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How to Categorise Loans & Loan Repayments

Which categories to use for transactions that are loans or loan repayments if you're a sole trader

Updated over 2 years ago

If you've received a loan, using the 'Paying In' category for that transaction will let the app know that this is an injection capital as opposed to income. For any repayments that you make on a loan, you should use the 'Loan Repayments' category.
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Both the 'Paying In' and 'Loan Repayment' categories are not included in any self-assessment reports as income or expenses.
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You won't be able to claim for the repayments, however, you can claim for interest paid on any business loans. You should class interest paid as 'Bank Interest'.
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