Business expenses incurred before the commencement of your business can be relieved if the expenses met the following criteria.
Examples of these expenses include advertising costs, wages, rent, rates which incurred prior to commencement of business.
These pre-trading expenses would be treated as having been incurred on the first day of trading for tax purposes and “setoff” against sales for the year to reduce the trading profit of the first accounting period.
Canterbury Accountancy – making tax reporting simple for you as business owners and entrepreneurs.
