New Business--How far back can I claim expenses

Randyleprechaun

Hi,

I've recently started a new business and I'm just wondering how far back I can go to claim for certain expenses and/or VAT.

Business registration date is March 25th but Im wondering can I claim for my van insurance and tax which were paid for in feb and march respectively i think.

Thanks

Baby4

This post has been deleted.

keano2012

these are things you should know or have researched prior to setting up. Surely you have an accountant? Dont think you will get a definitive answer on a boards website tbh. Even emailing the revenue office will get you a better answer you would imagine? a simple google around their website will get you better answers.

JCYSHOW

You can claim any business expense relating to the trade incurred in the 3 year period before you actually commenced to trade. In your case this is any relevant business expense incurred since 26th March 2010. So your VAN costs should be allowed as a deduction. These are called Pre-trading expenses.

Just be aware that if you claim these pre-trading expenses and as a result there is a loss in the business in the year there are some restrictions on how you use the loss against tax.

The above is for your annual accounts and income tax only. For VAT see below.

For VAT you can only claim VAT back on expenses incurred since the date you are registered for VAT - this can be different to the date you registered the business as starting with Revenue.
If this means you cannot reclaim VAT on some expenses you incurred you might be able to get your VAT registration backdated - a little at least
If you cannot reclaim the VAT because of the above you can claim the full amount of the expense (VAT inclusive) as a business expense in your accounts.

Did you register the business for Tax and VAT on the 25th March?

Randyleprechaun

Yes tax and VAT from 25th