Can I withdraw the initial capital from a business without paying tax?

Fnu

If as a sole trader I initially invest €5,000 in the business (lodge to a business account), can I withdraw this at a later date without paying tax?

i.e. Can it be withdrawn to repay me for the initial "loan" or does it count as drawings regardless of how much I put in at the start?

The business is a going concern and continuing to trade as usual.

Thanks

Mr. Incognito

Generally, there are only two ways of extracting cash from a company.

Dividends or Salary.

As you are the only participator close company legislation applies- any interest on the loan would be seen as a distribution to you and taxed as such.

Repayment of the loan won't trigger any tax but interest will.

dbran

I believe the OP said he was a sole trader.

In this senario, tax is only based on the profits of the business. What he puts in or out is not relevant for taxes.

So if you want to pay in or repay yourself out the business, the tax that you pay will be the same, no more no less.

DB

Fnu

Hi,

Yep, its a soletrader, not a company.
Thanks for that DB!