Directors Loan: Put money into the company that does not have an invoice, is not a grant/loan

Vote Up
0
Vote Down

Hi,

I am a sole trader. I have put money into the business but I do not seem to be able to put it into the accounts.

I tried as a directors loan (type thing) and I now seem to have a payroll – which I need to get rid of – there is no payroll. (I now seem to be getting p30s which I need to stop getting).

All I want to do is insert an amount of money into the business, but it does not have an invoice or anything. Can you help me. Or have I made an unholy mess of things.

Phil

3 answers

Vote Up
0
Vote Down
Peter Connor ⋅ Staff July 18, 2014
Public

Hi Phil,
I’ve a question for you, and I’ll give you a better answer. When you setup your account did you select SoleTrader or Limited Company?
Cheers P

#answer-653
  1. Phil July 18, 2014
    Hi Pete,

    I selected Sole Trader

    Phil
Vote Up
0
Vote Down
Peter Connor ⋅ Staff July 18, 2014
Public

Hi Phil. 
Ok I’ll just explain a couple of things.  
Investing Money:
As a Sole Trader the Government/Revenue don’t differentiate you from your business. That’s the key difference between Sole Trader and Limited Company. A Limited Company is a separate entity to you, but as Sole Trader isn’t.
You can’t put money “into”, the business, what you’re thinking of is as a Limited business you can put money into the business and take it out tax free, so before tax.
If you want to start an opening balance in Bullet just create your bank account (good practice to setup a new one for your business) and create an opening balance. 
You can do that here My Company > Bank Accounts > Create New Account

How to create an opening bank balance in Bullet free online accounting software

How to create an opening bank balance in Bullet free online accounting software


 
Payroll
So you’re quite right Sole Traders can’t use payroll to pay themselve but you as a sole trader can still have employees, therefore you’ll need payroll to pay them.  
Hope that helps.

Pete

#answer-655
  1. Phil July 18, 2014
    Thanks Pete, light bulb moment. So how do I stop the P30s from appearing
  2. Peter Connor July 18, 2014
    Did you add yourself as an employee? If so just delete yourself That should stop the P30s. It's that a great system though, creating tax returns while you sleep!

    P
  3. Phil July 18, 2014
    will do this over the weekend. Not sure if I added myself as an employee, although think I might have. thanks phil
  4. Phil July 18, 2014
    Hi peter,

    Just checked. There are no employees in my system. What can I do now?
  5. Peter Connor July 18, 2014
    Hi Phil,

    Something's triggered it, let me have a look.

    Pete
  6. Peter Connor July 18, 2014
    Sorry P, what's the email address the account is setup under?

    P
  7. Phil July 18, 2014
    from one P to another

    info@mortimerdesign.ie
Vote Up
0
Vote Down
Brendan_Brady ⋅ Community Accountant - Brady Associates July 19, 2014
Public

Phil
 
When you initially set up the loan as a “Directors Loan”, in order to do this you would have been prompted to add yourself as a director (Money In > Add a directors loan > Actions > Add new Director) by adding yourself as a director you’re automatically set up as an employee.
 
To delete yourself as an employee, go to Wages, Employees, Click on your name, scroll down to the bottom of the page and click delete.
 
For future reference, the best way to account for funds you introduce into the business is via journal entry. (My Company, manual journal entries, new journal entry, Debit = bank account you are putting the funds into, Credit = owner equity)
Hope this helps
 
Brendan

#answer-657
  1. Phil July 19, 2014
    Hi Brendan,

    well you are up early.

    When I go to Wages, employees the page I get is:
    Welcome to employees. The easiest way to get started is to 'Import a P2C File'
    There is a blue button which has 'Import a P2C File'. That is the only action that I can see on the page. There is nothing else. So I cannot delete anything as I only get the landing page for setting up employees. How can I delete myself if nothing is there?

    Phil
  2. Brendan_Brady July 22, 2014
    Sorry, what are you trying to achieve in terms of the P30's? I thought a P30 balance was appearing on your dashboard?

Please login or Register to Submit Answer