Business purchases

[Reece^B]

Hi

I'm buying tools for my new business (i've yet to incorporate) can you claim back on items bought before incorporation?

Are you allowed to use your personal bank to purchase or does it need be from business account?

Thanks

 

[Scalloway]

This article explains what is allowed.

http://stewartaccounting.co.uk/what-pre-incorporation-expenses-can-you-claim/

If the company has not been incorporated then it can't have a bank account. Any expenditure you incur prior to incorporation goes into the company's accounts as a director's loan. The company can repay you at a later date.

 

[Reece^B]

Thanks for the reply, how many months can I claim this back from?

 

[Scalloway]

You can claim expenses for up to 7 years before a company starts up in business.