01708 722142 kim@mawney.co.uk

“I am starting a business soon and have already started buying things for the business; I am also using my laptop for the business; can I can claim anything in my tax return for these expenses?”

Well the short answer is yes you can as long as these are necessary business costs they can be treated as pre-trading expenses. You can include expenses up to 7 years prior to the commencement (first day) of trade if they relate wholly and exclusively to the business and they would normally be allowed after the commencement of trade.

The first day of trade will be when you are ready to provide goods and services to your customers and you do provide, or offer to provide, the goods and services to your customers.

If you decide to bring your own personal items into the business then then these will also become an asset of the business; they will be included at market value, what it is worth now and not the original cost.

Examples of common pre-trading expenses are:

  • Advertising
  • Stationery
  • Telephone and broadband
  • Heat and light
  • Rent
  • Mileage
  • Equipment for the business
  • Interest on a business loan

All pre-trading expenses will be included in your first set of accounts and treated as if there were purchased on your first day of trading.

As always if you have any questions then speak to your Accountant or contact me for help with all of your accountancy and taxation needs.

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