Buying Ltd Company

[samiralishah]

Hi All

Please help, I'm new to business, I'm in process of buying an online retail business, this will cost me 40k. I dont expect to make a profit in the first 3 years because 40k is remortgage loan. I'm Ltd company and haven't worked for past 5 years.

Can I claim tax back?
should i revert to sole trader?
I pay payment of 500 pounds for loan, will this be an expense?
Will I only pay tx once 40k is paid off?

Please someone advise me


Thank you

[Ian J]

You really need to speak to an accountant whose answer will depend quite a lot on your individual circumstances but you shouldn't confuse repayments on a loan to buy the business and the profit that it will make.

It's possible that the business will be profitable immediately which may give rise to a tax liability even though the amount of profit is less than the loan repayments.

As I said, you need professional advice

[tax-sorted]

You really should seek advice from a professional - I am biased because I am one But I have seen too many people start the wrong way and it has cost them thousands of pounds in tax because they didn't get the right advice at the start.

Visit my website where you can download many reports and guides which may answer some of your questions.
Good luck