Are you planning to start a business soon?

Yes, keep records for when you start. Expenses you incur now, before you start trading, can be claimed as pre-trading expenses once you do start. Keep all receipts with dates, and when you register as self-employed or start your company, these costs can be claimed as if incurred on your first day of trading.

Did you buy the equipment within the last 7 years?

Expense may be too old to claim. Pre-trading expenses must be incurred within 7 years of starting your business. If you bought equipment more than 7 years before you started trading, it cannot be claimed as a pre-trading expense. However, if you still use it in your business, you may need to consider its current value.

Did you own this personally before deciding to start your business?

Personal items brought into the business. If you owned equipment personally before starting your business and now use it for business, you can introduce it into your business at its market value when you start trading. This applies to items you already owned, not items bought specifically in preparation for your business.

Will you use this equipment 100% for business?

Yes, pre-trading equipment can be claimed. Good news! You can claim equipment bought before you officially started trading. HMRC allows 'pre-trading expenses' - costs incurred in the 7 years before your business starts, as long as they would have been allowable if the business had already been trading. Equipment qualifies for capital allowances in the normal way.

Is this for costs like domain names, business cards, training, or supplies?

Yes, pre-trading costs can be claimed. You can claim business expenses incurred before you started trading. These 'pre-trading expenses' are treated as if they happened on the first day of your business. Revenue expenses (not capital items) like domain names, business cards, training, and initial supplies can all be claimed if they would have been allowable for your business.

Is this a cost that would normally be a business expense?

Yes, pre-trading costs can be claimed. You can claim business expenses incurred before you started trading. These 'pre-trading expenses' are treated as if they happened on the first day of your business. Revenue expenses (not capital items) like domain names, business cards, training, and initial supplies can all be claimed if they would have been allowable for your business.

Can I Expense This?←All expenses

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Find out if you can claim expenses incurred before you started your business.

Question 1

Can I Expense Equipment Bought Before I Was Registered?

1Question 1

Are you now self-employed or a sole trader?

This includes freelancers and contractors not working through a limited company.

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Important disclaimer

This tool provides general guidance based on HMRC rules at the time of writing and is for informational purposes only. It does not constitute professional tax, legal, or financial advice. Tax rules change frequently and this information may be outdated or incomplete. No warranty is given as to accuracy. We accept no liability for any loss, damage, or consequences arising from reliance on this guidance. Use of this tool does not create a professional-client relationship. Your specific circumstances may differ significantly. Always consult a qualified accountant or tax advisor before making financial decisions.