Cash lodgement and tax

eurasian

Hi!
Just a quick question here. I'm a PAYE employee and paying all taxes related to my income. One of my friends who owed me money just paid me back with cash, which I then lodged into my current account using self-service machines in the bank branch. Obviously this is a lodgement and not an income from any company or other business organization and appears in statement as ATM lodgement. I wonder if this is taxable/need to be declared in any way or am I panicking for no reason here?

Sorry if this is was discussed here before. Could't find anything similar.
Thanks in advance.

server down

You don’t owe tax on loan repayments unless you are charging interest.

eurasian

server down wrote: »

You don’t owe tax on loan repayments unless you are charging interest.

Thanks for response. This is not a loan though. He just gave me a few hundred euro he borrowed from me some time ago.

mickdw

eurasian wrote: »

Thanks for response. This is not a loan though. He just gave me a few hundred euro he borrowed from me some time ago.

You already paid tax on this income so no tax due however its never a good idea to be lodging cash to your bank account when you cannot verify where it came from.

server down

eurasian wrote: »

Thanks for response. This is not a loan though. He just gave me a few hundred euro he borrowed from me some time ago.

Yeh that’s an interest free loan from you to him which he has paid back.

You don’t owe tax on it.

Peregrinus

eurasian wrote: »

Thanks for response. This is not a loan though. He just gave me a few hundred euro he borrowed from me some time ago.

If he borrowed it from you, you lent it to him. That's a loan.

What others have said is correct. The repayment of borrowed money is not taxable income. If you had charged him interest on the loan the interest would have been taxable income in your hands, but you didn't, so the issue doesn't arise.

Victor

mickdw wrote: »

its never a good idea to be lodging cash to your bank account when you cannot verify where it came from.

This suggestion is daft - if you have more cash than you are comfortable with, lodge it or spend it. The only time I have been asked about a lodgement is when I was lodging a 5-figure sum.

mickdw

Victor wrote: »

This suggestion is daft - if you have more cash than you are comfortable with, lodge it or spend it. The only time I have been asked about a lodgement is when I was lodging a 5-figure sum.

Fair enough, paye i suppose. The bank wont ask or care but as a self employed person myself, any tax audit will certainly query cash lodgements and want to know where they came from. You cannot really play the casual loan card too often in those circumstsnces.

Peregrinus

mickdw wrote: »

Fair enough, paye i suppose. The bank wont ask or care but as a self employed person myself, any tax audit will certainly query cash lodgements and want to know where they came from. You cannot really play the casual loan card too often in those circumstsnces.

Shouldn't be a problem as long as you have actually made the loan, and the receipt is a genuine repayment of the sum advanced. If the Revenue come calling you can just point to the earlier transaction reflecting the initial advance.