My colleague wants to set up as a sole trader. He wants to take out a loan in order to aquire assets / stock etc to be used in the business.
Would it be better to take out the loan under his own name, introduce this into the business and the business then repay the loan.Could he charge the business interest on his loan or could he take out drawings from the business to repay the loan? What are the tax implications for the business? Are drawings taken out in addition to any salary taxable under PAYE and NI ?