Start Up - Directors Loan

[MardDavey]

Hi,

I recently dipped my toe into starting a service based business. I traded for a couple of weeks to check it was feasible and because it was I registered the Ltd company a couple of months back.

Before the company was registered, I paid for a domain, equipment, google ads etc which has amounted to a few thousand.

Am I able to claim these costs by classing the money as a directors loan paid to the company or should it be a business expenses which will be tax deductible at the end of the year?

Thanks in advance

 

[Scalloway]

The entry in the company books will be expenses matched by the Balance Sheet liability of the director's loan. Your accountant will advise if the expenses are tax deductible.

 

[Truemanbrown]

Generally, qualifying pre-trading expenditure should be treated as incurred on the first day that the business started to trade.

I would recommend that you keep all receipts for any amounts that you spend in getting your business up and running.

 

[Bobbo]

has ownership of the domain and the equipment been transferred from you personally to the company?