Extension regarding director's loan and salary

[chy_55223]

Dear Members

I am going to submit my extension application next month.

could anyone give me some advice about the above details:

1.My business is grocery supermarket. I have used the form of director loan 220k (from my personal account to my business account once). For three years running, I have already spent over 220K (As running a supermarket you have to buy stock very frequently, and the business quite busy so it is always running smooth/profitable, so I can use the revenue to buy stock again and again.)

my question is:
How the home office evaluate the total investment?
only 220k from the director's loan? or the amount I spend in running my business (investment on the annual account report should be over 220k a lot )

2. the reason why I ask the first question is I also pay myself reasonable salary every month. Although the salary is actually from my business profit, it still over 20k for 3 years, so HO can say this salary is actually deducted from my 220k director loan. so the investment is not qualified 200K.

My question is:
is the second point true? Do i need to re-transfer some money to my business account to cover the 3 years salary? if yes, in which form I should make the second investment: director's loan again or shared capital?

many thanks to everyone.

regards

Angus

[hina_pirzada]

Dear Member, one thing you need to be clear the salary you are taking in not a part of your investment. If you spent all your 220k in your business so you need show by submitting your accountant report including balance sheet.

In your bank statement it should be clearly showing of your investment transfer by your account. You must also include director loan agreement between you and your business.

If your business going in profit its means you are taking your salary from profit so this is separate. Please inline all your documents according to policy guidance.

Also tell your accountant to mention your name in accounts where he is going to show investment. for example

M ABC CR 220 K (Business Investment)

Further wait for other members response.