Can private non UK resident loan money (with interest) to Sole Trader in UK transferring money into bank account? What documents need to be prepared to support this deal?
This is outside of my direct bookkeeping experience but I'd say you need a signed copy of your client's letter setting up the arrangement. This should bear full details of the loan, its capital and interest repayments and details of from whom it's come.
From your AMLR perspective, you'd want to satisfy yourself that there's a supportable reason why such a loan would be made to your client - i.e. that it's not sticking out like a sore thumb as an atypical arrangement. To further assist your own due diligence I would put the question to your professional body's AMLR officer, also.
Andy
