Start Up Costs

DannyT90

I'm finding it difficult to know whether what I am spending now on starting my own business, should be included in my accounts once the business is up and running. Or do I get it to a point where I'm ready to start the business and start the costs from then onwards?

douglasstroud

Yes pre-trading expenses can be claimed and should be treated as an expense on day 1 of the business, providing that they would have been tax-deductible if you had incurred them while you were trading.

DannyT90

What about things like the cost of PII and registering with the ICO? I'm waiting for a business account to be opened, so everything at the moment is being paid out my personal account.

Would I just show in my books the transactions from my personal and business bank accounts to the relevant ledgers?

douglasstroud

Yes just show all expenditure as occurring on the first day of your business.

DannyT90

Thanks for your advice.

RyanMIP

What sort of business are you starting?

DannyT90

I've not long become AATQB, so I'm getting my bookkeeping licence and going self employed on the side of my full time job. I'm currently studying level 4, so looking to add services once I'm qualified.