Hi, I am wondering whther anyone there could help me with an accounting query. Generally my accounts are very simple, but I am struggling to get my head round this one!
I started a business carrying out renovation & property maintenance work, (for third parties) but then bought a property in order to renovate it, rent it out, and keep it as an investment property.

My problem is that I now, in theory, have no actual income whilst I am carrying out this work, which will take in excess of a year.

Must I therefore take out a personal loan to cover my general living expenses, repayable in future years from rental income, or may I pay myself a basic, nominal wage, offset as capital expenditure on the business, (as if, for example, I was a plumber whom I had employed to work on the property)? I could obviously keep records of work done, etc if necessary, in order to show that this was all ‘above board’.

Also is the situation different for repair work? Could I again pay myself a nominal wage, even though this meant the business itself made a loss?

Many thanks
Steve