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Sam, Accountant
Category: Tax
Satisfied Customers: 14195
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Im starting a new business venture (1-3 years time). However,

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I'm starting a new business venture (1-3 years time). However, I want to start the research phase now. All the products I buy for the research, can I deduct these from my tax bill now or in the future? I have not yet registered the business, should I register the business to do so?
Thanks for your question, I am Sam and I a one of the UK tax experts here on Just Answer.
Setting up costs, incurred prior to trading are allowable - however could you expand on what costs would be incurred through research - and how products purchased for research would arise.
I can then clarify further
Customer: replied 3 years ago.

Thank you for your reply. I intend to start up a catering company; the produce will be part experimental. To do this, I need to research on certain produce and see how they react. The equipment I will be requiring to purchase would be such items as a food dehydrator, pressure cooker, ingredients, courses undertaken to achieve certain qualifications etc.

Research and understanding of the produce is a large part of this new business venture; my main question would be any equipment/produce I buy prior to setting up the business - can I off set this in my future potential profits? Should I set up and register the business to do so?

Hi Sy
Thanks for your response and providing a detailed explanation of the business venture you are to embark on.
Due to the fact there will not just be business equipment and stock accumulating, but use of stock and utilities during this research period, I would advise to register now for self employment, as you then will get the full benefit of all costs as you go along.
If you leave registering until the time you are ready to trade, then the costs of ingredients and utilities, used already would not be reclaimable, and I imagine this will be the largest element of cost to you.
Let me know if you have any follow up questions
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