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Posted Tue, 31 Jan 2023 15:23:46 GMT by Yoswar Saridam
Hi, I recently quit my full time job and started do freelancing jobs. I haven't registered as a self employed yet (will do it asap) but have started freelancing from the beginning of this month, and I'm planning to buy equipments to be used 100% for business use (computers, office desks and stuff). My question is, does the date of purchase of these equipment matters in relation to my registration date as self employed? I mean, if I buy the equipments before I officially registered as self employed, can I still claim this as expenses (even though the equipments were bought before I officially registered)? Or does the expenses can only be claimed for equipments bought after I officially registered as self employed? Thank you.
Posted Mon, 06 Feb 2023 11:27:03 GMT by HMRC Admin 32

BIM46351 advises that tax relief on pre trading exepenses can only be claimed once trading has commenced, since the "costs will will be deductable in arriving at the profit, when trading begins".  

BIM46351 - Specific deductions: pre-trading expenditure: scope

Have a look a the guidance at:

Expenses if you're self-employed 

You will also need to keep business records for at least 5 years after the 31 January submission deadline.  

Business records if you're self-employed

Thank you.

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