Expenses before Business Bank Account Created...

[cmscotland]

Hiya folks,

Just a quick question, I know that per-incorporation expenses like formation fees are allowed to be then claimed back from the Ltd Co however I'm in the process of getting the Business Bank Account sorted (bank dragging their heels) but I need to buy some things for the Ltd Co (Laptop mainly) and ideally ASAP (today ideally!!) where do I stand with sticking this on my personal credit card, can I then just expense this back to my Ltd Co once I get my business banking sorted?

I'm due to start my first contract next week and I'll have a few other expenses (really just travel) also which is going to have to be off my personal card/account rather than the business as even if the account is created I'm not going to have Cards, etc before next week.

[malvolio]

You can back-claim any expenses incurred in setting up the business for up to a year previous (I think - check that) and provided they pass the wholly and exclusively test. Same goes for VAT when (if) you register for it.

[tractor]

..

You can back-claim any expenses incurred in setting up the business for up to a year previous (I think - check that) and provided they pass the wholly and exclusively test. Same goes for VAT when (if) you register for it.

But IIRC only as far back as the company's formation date/date you bought the company whichever is the later. WRT the VAT though, you will need to check with HMRC as e.g. if you don't egister for VAT for say 6 months after, they may have an issue with you back claiming before you were registered.

[northernladuk]

Quote from Greg@Capital from this thread

http://forums.contractoruk.com/accou...-expenses.html

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 RC VAT

[malvolio]

But IIRC only as far back as the company's formation date/date you bought the company whichever is the later. WRT the VAT though, you will need to check with HMRC as e.g. if you don't egister for VAT for say 6 months after, they may have an issue with you back claiming before you were registered.

No, absolutely not. If you can prove the cost was exclusively incurred in setting up the company, it's clearly a company expense. As for VAT, it's explained in detail on their website, but basically if you mark your invoices "VAT Registration Applied for" (assuming you have) then you can back charge any VAT that would have been charged if you were already registered.