Accounts Query

[Carron]

Hi

Need to pick your brains about accounts.

i'm planning on doing my own accounts. i done accounts at college about 10 years ago so i'm needing to do a refresher on that

I'm in the process of setting up. But as I'm pregnant I'll only be doing 1/2 a day or a full day per week for the next couple of months till i stop. i'll mainly be working on friends as there is enough around to keep me busy for the hours i want to do

I'm concentrating more on setting up now so that after I have the baby i have a job to go back to so

at the moment i'm focusing more on practicing on friends and getting my speed up, geting confident about my products and getting the word out that i'll be starting up properly after my break.

As this has been a long process and I have purchased some of my equipment over the last couple of years, then the rest will be next year.

Can I still keep receipts from last year and this year for my accounts once i'm fully set up and working next year?

I'm not earning anything at the moment so there is no wages to go through.

 

[number1kitty]

I believe you can claim back your start up costs from up to 5 years (although I have also been told 3 as well!).

If not you can technically loan the business money to offset against earnings. So if your equipment cost two grand you can put that down as a directors loan (there is another word as a sole trader, but its disappered). You can then repay your loan from your income.

You may be best calling the tax office to clarify and keep all your receipts and invoices in a safe place.

Kate x

 

[jes]

That's a tricky one. Are you registered as self employed? It sounds like your not, so I can't see how you can claim any business expenses until you are 'in business' (as in self employed)... if you see what I mean?

As Kate has said, best to call HMRC and ask for advise