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Post Info TOPIC: Pre-start up costs

Senior Member

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Posts: 468
Pre-start up costs

If a company has incurred pre-start up costs before the company registration date - for book-keeping purposes, do you record them on the first date the company started trading as 'start up costs' or the actula date the expenditure was incurred?

Note that the client also is VAT regsitered  therefore will also need to re-claim VAT on these costs.




Thanks, Nadia.

Senior Member

Status: Offline
Posts: 113

For start-up costs I would record them on the 1st day of the company's trade so they appear in your accounts for the year.

Be aware that there are timelimits on recovering VAT, 6 months for services and that not all costs and VAT can be claimed. HMRC website has some good information on this.


Rob Director R & J Business Solutions ( @RobRJBS


Status: Offline
Posts: 686

You can claim up to 7 years worth of pre-trading expenses if they would have been allowable if the business had been trading.


BKN Book-keeper of the year 2011

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