Claiming startup expenses

[sevenupcan]

I've recently started my own company and I wanted to know how far back I can claim expenses for. I incorporated my business in September, and started trading in November. Some of the tools I use for my business I bought a few months before I incorporated my business. So my question is: what expenses that I've personally paid for can I claim back through my company? Do I have to have paid for them after I incorporated my company?

Many thanks for your time!

 

[Scalloway]

You can account for pre incorporation expenses as if they were incurred on the day the company was incorporated. They are included in the company's books as a director's loan. You can repay yourself whenever funds permit.

 

[sevenupcan]

Hey,

Thanks for replying. Do you know if it matters how long ago the expenses were purchased? For example I have some icons which were purchased a few months before I incorporated my company, but I use them now in my services now.

 

[Scalloway]

I can't track down a reference from HMRC but as far as I can recall you can go back several years.

 

[makeyourbusinessbetter]

Hey,

Thanks for replying. Do you know if it matters how long ago the expenses were purchased? For example I have some icons which were purchased a few months before I incorporated my company, but I use them now in my services now.

Hi s

Please find below the link to the HMRC website relating to pre-trading costs. Generally, allowable expenses from the previous seven years can be treated as if they were incurred on the date you started trading. Just make sure you have invoices or receipts as evidence to backup this expenditure.

http://www.hmrc.gov.uk/manuals/bimmanual/bim46351.htm

Good luck with your business. Have a good year.

Gordon