I have a new client who has a beauty salon. She started trading in May 2013. However, she moved into the business premises in 2012 with the intention of trading, but the property needed work doing and had to pay builders to do the work. The builders ended up disappearing half way through the job, and as a result she had to get family to finish the repair works. This delayed opening by nearly a year.
Can the expenses she incurred during 2012 up to May 2013 be included in the accounts. These include electric, rent etc.
She has only just come to me with the intention of accounts done for the 1st year May 2013 to 5 April 2014.
standard practice is to just treat all directly attributable expenses incured on the lead up to opening as though incurred on the first day of trading.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
For VAT registered that comes down to 4 years for VAT purposes. Also for services its restricted to 6 months.
For non VAT registered I do not think that you would have any issue with up to 12 months prior to commencement for services (provided that it can be shown that such were genuinely for the business) although I would hold off running with that until someone such as Mark has read this and can confirm my timing for services.
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
