Telling the IR about my business

antilles

I'm in the middle of setting up a business around my existing job. I bought some equipment for the business around 2 months ago and have had a few other expenses already (e.g. purchasing some web space). But I haven't actually earned any money yet and am and not expecting to start doing so for several months.

I read that you have to inform the IR within 3 months of setting up a business. So my question is, do I tell them now, or wait until I start earning some money from it?

I want to offset the cost of the equipment I purchased against my tax bill, but am worried that I may not be able to do it if I don't inform the IR now. In other words, if I tell them about the business in say, another 3 months, will I still be able to claim back the cost of the equipment I've purchased?

martindow

I have always found the IR helpline people very good. I would phone up to ask.
http://search2.hmrc.gov.uk/kbroker/hmrc/contactus/search.ladv?sr=0&as=1&cs=ISO-8859-1&sc=hmrc&sf=&sm=0&nh=50&ha=34&tx0=366878&fl0=__dsid:&tx1=2042&raction=view

maxheadroom

Tell them about it, I was in your boat and didint and now cannot offset the startup costs (self employed) so am out of pocket fortunatley not too much.

My other mistake not using a seperate bank account from the start

antilles

Cheers - yes it seems you do have to tell them even if you're earning no money to reclaim startup costs.