Expenses before registering a business

sternn

I'm just about to begin the process of registering a limited company. I know there is some guidance from revenue around pre-trading expenses, one of which is costs for preparing a business plan.

We are about to purchase a laptop for the sole purpose of the business. Anyone know if I can consider this laptop purchase as a legitimate pre-trading expense?

https://www.revenue.ie/en/starting-a-business/claiming-a-deduction-for-expenses/index.aspx

Gloomtastic!

According to Accountants Ireland, trading expenses up to three years before the commencement of business are acceptable.

https://www.charteredaccountants.ie/taxsource/1997/en/act/pub/0039/nfg/sec0082-nfg.html

sternn

Gloomtastic! wrote: »

According to Accountants Ireland, trading expenses up to three years before the commencement of business are acceptable.

https://www.charteredaccountants.ie/taxsource/1997/en/act/pub/0039/nfg/sec0082-nfg.html

Thanks! They don't specify what constitutes legitimate trading expenses, but I'll check it out with an accountant.

In my non professional opinion, I think a laptop is a legitimate trading expense given it will solely be used for the business.

touts

sternn wrote: »

Thanks! They don't specify what constitutes legitimate trading expenses, but I'll check it out with an accountant.

In my non professional opinion, I think a laptop is a legitimate trading expense given it will solely be used for the business.

Yeah it's a bit vague. I've heard some stories of lads who put in expenses they thought were reasonable and their accountant told them no way that they would never get through a revenue audit. And it seems to vary depending on if you are a sole trader or limited company. Best to go through it with your accountant.