I have this question, if somebody can help me: The relative living and paying tax overseas, agreed to finance my business. He is visiting UK quiet often (few times a moth) on business trips and we agreed that interest and repayments will be made in cash to save me some money on bank transfers.
How should I document all this in my records? I can only have the proof of cash withdrawal, if hmrc would ask for any.
Thanks
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What I hear I forget
What I see I remember
What I do I understand..
Make sure you draw up a loan agreement that outlines the principle and the interest to be paid and get a receipt when you've paid it and it'll be fine. You can get a receipt when you take out the money and attach it to the receipt for the payment.
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Please correct me if I'm wrong... I am only human sucking up knowledge... Sometimes bits leak out!
They'll want overseas address for the relative and I dare say they'll go to some length to see if this is a genuine address. The problem with this kind of arrangement is that the Revenue will see the possibility of money laundering.
