First year accounts - bringing in assets

[TheGreenBastard]

Is it frowned upon to bring in assets / expenses in the first year of accounts? I have a lot of domains, hosting costs, office costs that pre-date the incorporation of my Ltd.

I know technically it's possible and assume as long as all is above board there should be no harm done - I just wonder if it could increases the chances of investigation (probably not something folk here can answer). I suspect my "profits" would be severely dampened by bringing them in.

[pr1]

Is it frowned upon to bring in assets / expenses in the first year of accounts? I have a lot of domains, hosting costs, office costs that pre-date the incorporation of my Ltd.

I know technically it's possible and assume as long as all is above board there should be no harm done - I just wonder if it could increases the chances of investigation (probably not something folk here can answer). I suspect my "profits" would be severely dampened by bringing them in.

No - it's completely normal and what 99% of businesses (should) do - if they're business expenses (with invoices/receipts etc) they should be on the company books - it would be more strange to put pre-incorporation expenses in the second or third year of accounts

[mudskipper]

Don't forget yourCo can also claim back the VAT for them, if registered for VAT (even on FRS)

[northernladuk]

Did your accountant not mention this to you or bave any guidance as part of their joining process?

[TheGreenBastard]

Thanks for the responses! I thought I could only claim back VAT (as I'm on FRS) on purchases 2K+?

Does anyone have insight to VAT claims on EU purchases? 99% of hosting costs is French, which has 20% VAT applied. Does FRS mean I can't claim this back? (Probably one for the accountant to answer).

[MrMarkyMark]

Thanks for the responses! I thought I could only claim back VAT (as I'm on FRS) on purchases 2K+?

Does anyone have insight to VAT claims on EU purchases? 99% of hosting costs is French, which has 20% VAT applied. Does FRS mean I can't claim this back? (Probably one for the accountant to answer).

What do you think it means?
Maybe FRS isn't right for you.

[TheGreenBastard]

Did your accountant not mention this to you or bave any guidance as part of their joining process?

They did, I'm really asking for peace of mind, I want to know 100% wants going on with my accounting.

What do you think it means?
Maybe FRS isn't right for you.

My interpretation of FRS is exactly as outlined here: https://www.gov.uk/vat-flat-rate-scheme/overview

What I'm asking if there's a difference if domestic VAT vs. EU economic area. As I'm on FRS, does this carry on to EU purchases too.

[MrMarkyMark]

What I'm asking if there's a difference if domestic VAT vs. EU economic area. As I'm on FRS, does this carry on to EU purchases too.

Which part of the following are you having trouble understanding

you can’t reclaim the VAT on your purchases - except for certain capital assets over £2,000

[LondonManc]

They did, I'm really asking for peace of mind, I want to know 100% wants going on with my accounting.



My interpretation of FRS is exactly as outlined here: https://www.gov.uk/vat-flat-rate-scheme/overview

What I'm asking if there's a difference if domestic VAT vs. EU economic area. As I'm on FRS, does this carry on to EU purchases too.

Have you asked your accountant? You're (in theory) paying them a lot of money for this sort of advice, which they'll be more update than most on here on as most on here are day rate microconsultancies.

[TheGreenBastard]

Which part of the following are you having trouble understanding

OK so it's applicable intra-country in the EEA. It's seems a reasonable to question to ask.