Tax deductable expenses

[mdavies]

Two questions -

1.Does anyone know if you can claim back the cost of books - technical books that will increase my skills and enable me to offer more services?

2. If you start a business but already have the IT kit any idea if you can claim costs back for these.

Cheers

Mark

[Jayne]

Hi,

You can claim for books for your businesses, agains tax (if that's what you mean)

I think you can put the cost of you IT stuff in your business start up cost (need proof of payment).

Alpha will be along soon, to give you the indepth version :D

Jayne

[autolycus]

Mark,

If you have got IT kit that you bought for yourself prior to starting the business then you can now sell that kit to the business.

You need to charge a "fair" price for it, allowing for age/condition, etc.

Also remember that there will be no VAT on the sale from you (as a private individual) to the business so the business can;t reclaim any VAT on the purchase.

HTH,
Dave.

[Alpha]

1.Does anyone know if you can claim back the cost of books - technical books that will increase my skills and enable me to offer more services?

Yes there should be no problem in claiming these back

2. If you start a business but already have the IT kit any idea if you can claim costs back for these.

Relief may be available for expenditure incurred prior to the commencement of trade and would be treated as an expense incurred as at the first day of trading providing
- it is incurred in the 7 years prior to the commencement of trade
- It would be allowable as an expense if incurred after the commencement of trade and
- it is incurred by the person or officer that is to carry on the trade

As far as vat goes if the entity is vat registered

a company may claim the vat element of goods and services supplied to a person before incorporation provided that person
-becomes a member, employee, or officer of the company on incorporation
- is reimbursed in full for the expenditure he incurred and
- was not a taxable person in his own right at the date of acquiring the goods/services

For a sole trader/partnership the pre trading vat may be reclaimed providing it was purchased within the last three years and is still in posession at the time of registration.

Long winded but full answer (Which is very unusual for me!! :D )

[Jayne]

Told you so Mark...Alpha knows his stuff :lol:

Jayne