How can and may a family member (parents-in-law) do a gift/donation to the sole proprietor to purchase large equipment? Can this be done without any consideration in return, or is it best to draw up an agreement with consideration in return?
Or is a win-win loan better in this case?
A win-win loan is useful because the donor can claim it for tax purposes. On the other hand, if someone wants to give or lend you £1,000 and there are no additional costs involved, you do not necessarily have to process this for accounting purposes.
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
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