<p>Yes. You can claim pre-trading expenses of up to seven years before the incorporation date of your <a href="https://goforma.com/limited-company/what-is-a-limited-company" target="_blank">limited company</a>, as long as these expenses have been paid for with your own money and were incurred ‘wholly, exclusively and necessarily' for setting up your business.<br></p><p>Examples of pre-trading expenses you can claim for include: </p><ul><li>Internet and domain name fees</li><li>Purchase of computer equipment and software</li><li>Accountancy and other professional fees</li><li>Travel costs</li><li>Insurance</li><li>Stationery<br></li></ul><p>To learn more about allowable business expenses, read our <a href="https://www.goforma.com/tax/limited-company-director-expenses-tax-allowance" target="_blank">expenses and tax allowances guide for limited company directors</a>.</p>
Small Business Accountants
Can I claim expenses before my company was formed?
A UK limited company can reclaim qualifying pre-trading expenses incurred up to seven years before the business started to trade, under section 61 of the Corporation Tax Act 2009. The expenses must be of the kind that would be deductible once trading, for example professional fees, website costs, research, or equipment. For VAT, registered companies can also reclaim input VAT on goods bought up to four years before registration and services up to six months.
