Pre incorporation expenses

[sphinx]

Hi All

I've just started up a ltd company.

Can anyone enlighten me to the rules regarding expenses that you can claim prior to incorporation? Previously I think you could claim any expenses that were reasonably incurred in the process of starting your business for up to 18mths beforehand - anyone confirm / deny this for me?

thanks

[Wanderer]

Previously I think you could claim any expenses that were reasonably incurred in the process of starting your business for up to 18mths beforehand - anyone confirm / deny this for me?

Ahh, I think 18 months is probably a bit too much unless you have actually set up a business as a sole trader with tangible assets and that you are going to sell those assets to to the LTD company at fair market rates.

Can you outline the expenses you have in mind?

[Greg@CapitalCity]

Your pre-incorporation expenses can be claimed as a tax deduction through your business. There is no time limit on this, but 18month-old expenses might be a bit of a stretch to explain to the tax office if you needed to. Same old rules apply, the expenses need to be incurred "wholly, exclusively, and necessarily.." for your business.

Time limits to apply for VAT purposes, from the date you became VAT registered (if this applies to you). See sections 11.2 and 11.3 of;
HM Revenue & Customs