I've now set up my own company, ready for when I leave my current job at the end of the month. I've incurred quite a bit on costs to get things up and running, some of which were incurred before my company formation date. Can I put these all through the company accounts?
Can I put the costs of my ICB exams and membership through (some pre and some post incorporation)? I'm thhinking that I am an employee (director) of the company, so yes I can. It's no different to my current employer paying my training costs. Is that correct? The ICB costs are definatley necessary as without them I can't get a practice licence so can't practice...
From a technical viewpoint you shouldnt put through costs preincorporation as they wont be in the company's name and therefore shouldnt go through. However from a practical viewpoint I would include them. Out of interest what are the costs for and how much are they? You would expect costs like incorporating the company to be included pre incorporation but what else?
Yes you can put your ICB costs through. However are they allowed for tax purposes? Are they wholly and exclusively for the purposes for the business? Did you incur them because you were setting the company up or would you have incurred them anyway? There may also be a potential P11d benefit for the company paying the costs?
Most of the pre-incorporation costs I have are the ICB costs. I would say they are wholly and exlusivley for the purposes of the business as I'm only doing it to get my practice licence.
The rest of the costs (new pc, printer, desk and chair, and microsoft office) were all incurred post incorporation so they should all be fine.
Given that it's cost me £300 with the ICB so far I wanted to put as much through the company as I can, but I wasn't 100% sure where I stood on the pre-inc ones. Surely it's no different to where I work at the moment. We constantly send staff on courses to help develope them, all of which goes the the companies accounts and is allowed for tax. Why should my costs in my company be any different?
Difference is that it is your employer paying for staff to go on training courses.
With you it is you as the owner paying to train the owner not someone else you are employing.
It is a bit of a grey area but you may be ok given it is bookkeeping related costs for a bookkeeping business. But difficulty is justifying it is wholly and exclusively for the business as you get a benefit ie a qualification. That why i am saying there may be some benefit in kind implications.
