Investment and directors loan

[alin55555]

Dear members,

I wonder if someone can help me on this. I have my extension due soon, I invested 50k through a directors loan about six months ago. Since then 12 K has been spent by business (buying equipment and other expenses).

So when I submit my upto date accounts with the application, does it need to specified in accounts that 12 K has been spent ?


At present my business account balance is 39 K (final accounts amount )

Related point in Entrepreneur Guidance : Point 136. ""136. Please note: If you are relying on funds invested in a business, any money you have already ‘spent’ for business purposes must be shown as investment in your financial accounts.""

Thank you for your support and help

[zimba]

This simply means that it should be categorised under Director's loan or Share capital showing that it is invested by you.

[alin55555]

Dear Zimba

Thank you for your reply.

The above point says that money spent should be shown as "investment". But if my understanding is right: the investment is by the individual into a business (director Loan shown in accounts), then the limited company spends that money to buy equipment, office rent, employee salaries ), so as long as the money spent is shown as "Business Expense" section in accounts its fine ?

Or should the spent money be labelled as "Investment " in accounts according to this Guidance point ?

But office equipment employee salary is not an investment it's a business expense. Paying wages to employees, buying equipment marketing spending is not an investment, it's a business expense needed for running the business (limited company)

Thank you

Regards

[zimba]

should the spent money be labelled as "Investment " in accounts according to this Guidance point ?

No such requirement in the rules