The Book-keepers Forum (BKF)

Post Info TOPIC: Pre-Trading Expenses


Member

Status: Offline
Posts: 24
Date:
Pre-Trading Expenses


I started my book-keeping business 6 months ago. Can I include pre trading expenses in my accounts.

Summer


__________________


Moderator

Status: Offline
Posts: 106
Date:

Hi Summer,

You can claim for items going back up to seven years if they were made in respect of your self employment before you commenced trading. The expenses are treated as being incurred on the first day of trading, and can be treated as capital introduced. You need to be careful to distinguish between revenue and capital expenditure, as any capital items purchased will need to be expensed to the P&L over the appropriate number of years.

Guy


__________________


Member

Status: Offline
Posts: 9
Date:

Can I claim for what it cost me to complete my distance learning book-keeping course? I started it June 2006 and am paying for it DD so still have a couple of months on it. I got my VAT reg cert through yesterday and have been self-employed from May 1.

Philippa Watt

__________________

Pip



Veteran Member

Status: Offline
Posts: 50
Date:

Hi Philippa

I had a chat to the revenue a few months ago regarding a client who took a plumbing course to start his own business. The course cost around £10K, and the client automatically assumed he would be able to reclaim this cost. Unfortunately because he trades as a sole-trader this isn't the case, and the expense should be treated as drawings. 

I was told if he had been trading via a limited company and he was a director, he would be able to put the cost through as training if the course was in the companys name.

Therefore it does seem as though you can't reclaim the cost or the vat as it's a private expense. I would contact the revenue yourself though, as I've found no two calls to them ever get exactly the same answer!

Best of luck

Man



__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About