Accumilated buisiness items

[Billsoh!]

I use my subject term very loosely. Over the past 2 years I have been gradually accumulating new products from high street stores some as part of a 'running costs' for a business and others will be part of capital allowances(equipment). I have been reading this all very recently in the view to setting up a business so sorry if I did not say the terms perfectly. How ever I do not intend to start trading until 6th April the date I will also register on line as a business assuming this is the wisest date? . So because up until now I was not fully sure that I would start a business due to the present climate I have about 2 years worth of items, mentioned above, which I have bought in anticipation. Am I allowed to include the costs of those items bought as part of my new tax year ending 5th April 2011. I thought it fine as I would not set up in business till the 6th April this year.

Thanks for your help in advance!

[Tax Champion]

Yes

[Billsoh!]

Is there any other advice any one can add to this. It seems yes is the answer to me starting the business on the 6th April and registering then and it okay to declare my purchases at the end of that tax year. Would any one like to add to this? thanks.

[Tax Champion]

From a tax point of view it is worth waiting to 6 April because you will not have to include that on your 2010 tax return which is up to 5 April. However there maybe commercial imperatives that mean you need to start earlier.

[Incredulum]

From a tax point of view it is worth waiting to 6 April because you will not have to include that on your 2010 tax return which is up to 5 April.

Natch. From a tax point of view it makes stuff all difference, save that you would have to complete another tax return.


If you are likely to purchase in excess of 50k of plant in the period to March 2011 (including all purchases to date) then you might wish to think a little harder.