P & L

[mwt.taylor88]

Hi All,

I'm doing a forecast P & L for a business plan. Do I include start-up costs in the year 1 P&L numbers? Or is a P&L just a statement of what profit is made in that trading year.

Whether I include start-up costs also affects what VAT is recorded in that year e.g. VAT return on start-up costs.

All start-up capital was from private investment

thanks

 

[Scalloway]

I would put start up costs as a separate line. If I were investing I would need to see that the business could cover them.

 

[J4m3s@Finanscapes]

Agreed, the cost of starting up the business are costs just like any other and should be included in the P&L for all sorts of reasons - one of which is they will reduce your corporation tax bill.

You may also be able to claim-back the VAT on them, depending on the VAT scheme you're on.