I'm think of starting up a small business in 6 months time. I will need to purchase some equipment. Can I purchase it now and put it in my accounts once I've started or do I have to wait till I officially start trading?
expenises and self employment
Aug 23, 2004
3 Replies
Unfortunate typo in the subject line :-)
"...expenditure incurred before a trade begins (IBA, know how, machinery and plant, MEA, patents). Expenditure incurred before a trade begins is treated as incurred on the first day of trading."
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You will also be able to recover the VAT on your first VAT return (if there is VAT and if you become registered) and that is something you should think about, will it advantageous or disadvantageous to register for VAT?
Tell us the trade you are entering and we should be able to advise you.
Purchasing equipment for business isn't usually classed as expenses (except for small, trivial items) but is eligible for capital allowance. There are different allowance rates for different types of expenditure, see
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Alec
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