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Tax and NI
10. Pre-trading Expenses
By the time you actually start trading, you may have spent thousands of pounds on research and setting up the business.
Provided you have formally notified HM Revenue & Customs that you have started up a business, most of these costs are usually allowable as business expenses in the first year.
10.1 From the moment you decide to go into business, start keeping a record (with matching receipts, invoices and bank statements) of all your business expenditure.
- Set up a separate bank account to make this easier.
10.2 Some costs are not allowable.
- For example, training courses are only an allowable expense once you have officially commenced trading.
10.3 If you form a limited company, the formation costs incurred are not allowable.
Labels: Tax
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