This is my first corporate tax return and I'm tying myself in knots. I have a limited company but I'm the only person employed. For the tax year in question, I made a loss (this year is looking a lot better!).
Customer payments came into my business bank account but I paid for all purchases out of my own personal money and have not paid myself back from the business.
I'm using ready-made spreadsheets from DIY Accounting. I've filled in my sales and purchases and monthly bank current account transactions.
Now I come to the cash account. Should I:
- Allocate all my purchases to the cash account, i.e. treat my own personal money as the company's cash account? This seems wrong but is basically how I work
- Treat myself personally as a creditor who has bought all the business supplies on expenses and not been reimbursed? It seems that if I do this though, it appears as though the business has made no purchases and all the supplies for the work have just appeared out of thin air.
- Do something else that hasn't crossed my mind.
Help!