back dating receipts when starting business

[aliczech]

Please somebody help! I start self employment in May 09, but made few purchases for the business before my official starting date (registered with Inland Revenew) I was that time registered as a unemployed and receives some benefits for couple months. Q: Can I backdated my receips and put them thru my books? Purchase e.g. old van before I started be self employed from my redundancy money. Can anybody advise me please? Thank you.

[coccinelle]

I don't know how it works in UK but no way can you back date a receipt in France and I'd think the same for you in UK.
What I did when I was setting up business and this was agreed with my accountant, was to claim all purchases made before set up eg telephone, computer etc as expenses.
I'd check with an accountant. hope somebody can help you out.
Another idea; your company could also buy your van from you...

[Mr Veritas]

I am of the opinion that coccinelle is right.
I would think that receipts from before the date that the business was registered would not be backdated, and put through your books,this would (in effect) count as fraud.
Just how far back would you be allowed to go if this were legal.
Check with HM Revenue & Customs,but I think they will only say the same thing.

[jivebunny]

Any expenditure incurred before trading starts which would normally be allowed for tax purposes can be claimed as a deduction. Strictly speaking the total pretrading expenditure is regarded as a loss incurred on the day trading starts. In your case you should make a list of the expenditure before trading and hand it to whoever is going to do your tax return next year.

Good luck.

[ummmm]

As far as I'm aware...yes you can. It's been quite a while since I ran a business but I think you can go back 6 months. Obviouly they have to be related.

Did you buy the van for the purpose of your new business?

[tamborine]

If this is your 1st year of SE your Accounts will be due to IR from March 2009 to April 2010, (annual accounts).

IR will send you SE forms months before in readiness for requested accounts.

Visit your local IR office; they're very receptive & helpful.

[Skyline D]

The first two answers are wrong. You can claim tax relief for pre-trading expenditure as long as that's genuinely what it was for.

Even if the van wasn't bought specifically for the business you can bring it in on commencement as capital introduced and claim the appropriate capital allowances.

[bpromoter]

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