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Where Taxpayers and Advisers Meet

Backdating tax claims for new business and trading definition

dilby
Posts:3
Joined:Sat Jan 22, 2011 8:38 pm
Backdating tax claims for new business and trading definition

Postby dilby » Mon Apr 11, 2022 10:47 am

Hi all - I recently bought a van to convert into a campervan. 3 months in and through my social media presence things have snowballed an I'm already getting requests for work etc. I'm not quite at the point of being confident to do it professionally yet but it's looking a likely route for me to go down.
I already run a business and when I went VAT registered my accountant at the time helped me claim back a bunch of VAT on items I had bought prior to registration.

I'm wondering if I do create a business, would I be able to claim back any purchases I'm now making as they are helping contribute to building my audience and expertise, or do I need to be raising invoices and trading at the time of purchase of those goods. I'm also curious at what point
a business is considered trading. For example, if anyone can start a business and claim for goods then if you were doing a house extension you could just start a business as a property developer and claim back on all materials. So I'm assuming there is some sort of requirement to prove
you are trading to the public and perhaps a volume threshold.

Many thanks!

Incredulum
Posts:2795
Joined:Thu Dec 03, 2009 5:35 pm

Re: Backdating tax claims for new business and trading definition

Postby Incredulum » Mon Apr 11, 2022 5:51 pm

I've no idea what your question is, sorry.

What does your new business do?

dilby
Posts:3
Joined:Sat Jan 22, 2011 8:38 pm

Re: Backdating tax claims for new business and trading definition

Postby dilby » Tue Apr 12, 2022 8:25 am

Apologies if I wasn't clear. I ahven't started the business yet but it will be doing various campervan conversion tasks, such as windows, furniture, and perhaps complete conversions. There are several other companies who have started this way; did their own campervan conversion and created a large online following, then monetised it by offering those services (a very common new business model). I'm essentially trying to find out if these companies can backdate their expense claims to before they were a business. I know I've been able to do that with my own design company in terms of VAT. But I'm also wondering at what point your business is considered to be trading as per my hypothetical point about property development.

Thank you


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