Start-up costs.

[Beatrix Kiddo]

First off, I promise I've read the "Basic advice" sticky at the top, and I couldn't see this mentioned. Also I have done a search but I might not be using the right search terms because I haven't found an answer. So with that in mind, I have a question, and the answer might seem obvious to you but I have tried to find it out for myself.

At the outset I'm going to have to use my own personal savings because my company has no money yet. So all my set-up costs (setting up a company, paying an accountant, possibly certain training courses, IPSE membership, etc.) are technically personal costs I'm paying on behalf of my company. Assuming my company ever makes any money, can it (the company) repay these startup costs to me (the person) without me incurring any additional tax liabilities? Is it treated as a loan, or am I over-thinking this?

Before you say it, I WILL ask my accountant this nearer the time, but I'm not that far down the road yet, and I'm trying to square it in my mind while I'm still in the planning stages.

Thanks.

[stek]

Training courses are not generally allowable expenses.

[Louisa@InTouch]

For those start up costs mentioned, you will be reclaiming these back through your company as expenses.

Your company can reimburse you and this will NOT have any personal income tax implications.

Keep the receipts for your business records and make sure you keep note of all the items to claim back. As soon as your business has some income, you can repay yourself at any time.

[LondonManc]

Set up costs:
Company creation, including share capital (£100 typical) and all that's involved - get a quote from an accountant
Insurance
Company stationery
Promotional items - website, business cards, etc.

You're now a business - behave like one.

Training course? Why do you feel you are ready for contracting but need a training course?

[northernladuk]

There is some stuff on google and it has been asked on here so surprised you didn't find anything. I've explained the best way to search further down..

Articles like this should help.

How to claim back pre-trading expenses from your company

Here are some things you can claim..

Contractor start up expenses that can be claimed

Best way to search is to use the method described here as the search box is pretty rubbish. Very intensive so best to try a few terms to get what you want.

http://forums.contractoruk.com/welco...uk-forums.html

[VectraMan]

Yes it's a loan. You can either pay for it yourself and then reimburse those expenses later, or lend your company some money to pay its bills. You can even reclaim expenses (and VAT) from before the company existed.

All with the caveat that they're allowable business expenses, which training courses aren't generally, and I'm not sure about IPSE.

[Beatrix Kiddo]

Thanks all, that's really helpful. I have a tendency to get a bit bogged down in the details, and didn't want to assume anything. (I'd been able to find some threads about which expenses can be claimed back, but not specifically about how the money should legitimately pass from me the individual to my company, and back again.)

Re training courses, I shouldn't have said that, I didnt mean actual courses. There are some MS certification exams that I don't need for permanent jobs but that might be worth having on my CV for contracting work, that's all. If they're not an allowable expense (and I know I wouldn't save much anyway) then that's fine.

Thanks again.

[northernladuk]

Thanks all, that's really helpful. I have a tendency to get a bit bogged down in the details, and didn't want to assume anything. (I'd been able to find some threads about which expenses can be claimed back, but not specifically about how the money should legitimately pass from me the individual to my company, and back again.)

Re training courses, I shouldn't have said that, I didnt mean actual courses. There are some MS certification exams that I don't need for permanent jobs but that might be worth having on my CV for contracting work, that's all. If they're not an allowable expense (and I know I wouldn't save much anyway) then that's fine.

Thanks again.

A test for you new searching skills here. There are some fairly clear rules but it gets muddy to apply. We've thrashed training out so try the search I linked and see if you can get an answer. P.s. I am not being facetious here. It's an easy one to try searching for that's all.

It will be <keywords> site:forums.contractoruk.com.

[kaiser78]

Training courses are not generally allowable expenses.

In some cases they are, if for example you need the skills to maintain your skillset/role ?

[LondonManc]

In some cases they are, if for example you need the skills to maintain your skillset/role ?

Correct to my understanding. Training on the 2016 version of the product you use would be allowable but training to go in a different direction wouldn't be.