Contractor start-up expenses that can be claimed
We have discussed the valid expenses you can claim whilst contract. However, when you first form your own limited company you will incur some start-up expenses on which you can claim tax relief.
Pre Trading Expenditure
Any valid expenses you can claim whilst contracting that are incurred in anticipation of your trading can be claimed as if they have been incurred on the first day of trading. These might include:
- Printing of Stationery
- Reference Materials/books.
- Trade Body Subscriptions.
- Web site production and hosting fees.
- Legal Fees (perhaps for contract drafting or review).
Equipment and Other Capital Costs
All associated equipment can be charged to the company if the equipment can be justified for use in the company’s trade. These would include things like computer hardware and software, office furniture, telephone, PDA, etc. They can be sold from personal ownership to the company.
- Public liability insurance policy – essential for your business.
- Employee liability insurance policy – required by law.
- Professional indemnity policy – optional to cover any specific risks.