Expenses prior registering as self-employed

Q & ACategory: QuestionsExpenses prior registering as self-employed
Kristi asked 1 year ago

Hi there! I am starting my own Virtual Assistant business, but for that, I will need a website and possibly some extra computer equipment. I have not registered as a self-employed yet, as it seems you only need to do that once you are ready to submit your taxes… But I have not started my business yet. So next year when I start filing my taxes, can I include my expenses from now, March 2021, although my business does not exist with HMRC? The whole process is very confusing and I don’t seem to find an answer anywhere… I hope the above makes sense 🙂 Thank you!

1 Answers
Julia Kermode Staff answered 1 year ago

Hi there, once you start your self-employed business you should be able to reclaim for any expenses incurred in relation to your business.  You don’t need to be registered as self-employed with HMRC at the time that you incur a cost.  Make sure you keep all receipts and paperwork, and if you want to reclaim 100% of the cost then the item must only be used in relation to the business.  If the item is sometimes for personal use then you can reclaim a proportion of the cost.  You might want to look into engaging a book-keeper to help you with the finances, they aren’t necessarily expensive (and you would put the cost through your business accounts) and might be worth it to help from the outset.  

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