I have applied for a Practice License having duly completed my exams and qualifications.
In the mean time, I have decided that I will open a business account on the day it arrives and not before. (I like to make sure ALL legal documents are in my possession before I start contemplating my new venture)
With this in mind, can I put the ALREADY purchased stationery, insurance cover, desktop computer etc. thru' the books, even tho' I have not yet placed any capital into the ''soon-to-be-opened'' business bank account?
(Capital which I will place into the ''soon-to-be-opened'' business bank account once the license has arrived.)
all pre trading expenditure incurred for the business is brought into the bsuiness as though incurred on the first day of trading regardless of when the receipt was for.
There are rules and time limits.
You must still have the asset for whch the expenditure was incurred and you must have the original receipt showing the expenditure.
The asset must have been purchased for the business with no other purpose but for the business
Your claims for non VAT purposes can go back up to seven years prior to the first day of trading.
For VAT purposes (may not effect you) that is reduced to 4 years for assets and 6 months for services.
HTH,
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.
Welcome to the forum. This is worth routing around HMRC''s website and learning as you will come across it a lot in your new career. Good luck for life after exams!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
