Expenses incurred beofre company formation

[VectraMan]

I bought a laptop whilst still working for an umbrella with the intention of using it to work on my plan B whilst staying away (not that I did). Then when I created my Ltd. a month or so later, I claimed back the cost as an expense and claimed back the VAT too (and did actually use it for demonstrations to a client).

Of course I could end up in jail yet, but the accoutant said it was okay.

I can't see why training would be different.

[malvolio]

It's not, and no different to buying a PC, some software, a factory to work out of, a telephone to talk to people...

There is no absolute rule that says you have to have the company first, or none of us would ever have started anything. As long as it's demonstrably part of the business setup you can back claim it for quite a long time. Ask your accountant to dig out the actual details (ermm, you do have an accountant, I take it?).

[Yatesy]

Cheers for clarifying that, yes I do have an accountant! Will check with him tomorrow!

[MarillionFan]

I did a course ten years ago before I was a contractor. I still have the receipt. Can I claim??? Oh plus, the meal I had that day??

[Denny]

Recently and whilst still in the land of being a permy, I spent money on some training materials and exams to reinforce my CV prior to making the plunge into contracting. Now that I'm up and running is it too late to count this as a business expense? It was genuinely and solely incurred to facilitate the rise into contractorhood, and was unrelated to my previous role.

TIA!

Yes it is too late. Your business has to be registered before you can claim for deductable allowances. There also needs to be some discernable link between your expenditure and improving your profitability and must not be used only for personal gain. If the business is not up and running then you can't make your case, can you. You are no different than anyone else between permie jobs who wants to better themselves.

[Ardesco]

Check out the 2 year rule Denny, you can claim a load of expenses made in the 2 years before your company was formed if you can prove they were a result of setting up the business. Of course this doesn't inclue sitting in the Dog and Duck, buying lots of food and beer and saying "I think I should start my own business"

HTH