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Starting a business - buy stock first ? (UK)?
I'm considering starting a small business and need to know if over a period of time I can purchase start up items and when ready inform HMRC when I'm about to start trading, or do I first inform them of my intention to trade and purchase stock accordingly ?
3 Answers
- TavyLv 78 years agoFavorite Answer
You can buy your stock now. Keep all receipts and start the book keeping. You have 3 months and 1 day to inform HMRC from the start of trading. So you have plenty of time.
UK
- CalaLv 78 years ago
This is classed as "start up costs", and is a legitimate business cost. In your first year of trading you can allow all the start up cost against your tax liability.
All these are legitimate start up costs: Fixtures and fittings, Stock, Stationery and office supplies, Vehicles, Premises and any required alterations, Insurance, Accountants fees, Advertising.
But you have to remember that if you start trading, even just one job that comes in from the advertising, then you have to use that as your trading start date, and (as Kernow Lady says) you must inform HMRC within 3 months of that date.
Source(s): Company Secretary - Anonymous8 years ago
You can buy as much stock as you like. Your business doesn't start until you begin selling it.
The 3 month rule was a NIC rule, and was abolished years ago.
