Hi Mark

I've another question for you. I am due to start trading this week. I have a raft of invoices for services and products I have bought prior to beginning trading, which I need to include in my accounts. The tax points for these obviously predate the start of my financial year. Does this matter and will it affect my accounts in any way?

Also what is the best way of recording and introducing into the business all the items I have purchased, with cash and otherwise?

Many thanksfor your help.

Vincent

Hi Vincent,

You should check with your accountant or tax office whether each payment can be included in your accounts. If it can, just enter the payment dated on the first day of your financial year. If you have paid out of your personal funds, set Paid From Account to Owners Capital (if you are self-employed) or Directors Loan (if the business is a limited company and you are the director).

Regards,

We are in a similar position, and as far as I can tell, you can claim back the VAT on services up to 6 months prior to you VAT registration date, and on goods up to 4 years, but as the above reply says, check with your accountant - your mileage may vary.