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bigduckontax, Accountant
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I am preparing my Ltd Company accounts for my accountant.

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I am preparing my Ltd Company accounts for my accountant. This is the first set of accounts for a new company. He is away at the moment so I cannot check a question I have with him. I understand that expenses can be claimed up to 6 years prior.Does this mean that all expenses within the previous 6 years must be submitted within this first set of accounts or if I find receipts after the accounts are submitted, I can still claim them in future accounts as long as it is within 6 years of the accounting period?

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

InniAccountants advise:

'For corporation tax purposes you’re officially allowed to reclaim expenses from the last seven years before trading.'

You do not need to claim them immediately, although it is normal so to do. Providing you do not breach the seven year envelope by all means defer them.

I do hope that you have found my reply of assistance.

Customer: replied 10 days ago.
Thank you for your helpful reply.
Please can you clarify about the terminology of 'reclaim'. For the accounting period, there was a large loss so so I would not be able to pay myself back any of the expenses incurred.Do I input the expenses into this set of accounts but have the option to repay myself at any later date when profits allow eg another year or two's time, or do I only input the expenses in the same accounting year that I actually repay myself? Alternatively, is it up to me when I input the expenses and when I pay back to myself as long as the date the expense was incurred is within 7 years of the trading start date?
Thank you.

Any loss the company makes can be carried forward indefinitely for Corporation Tax (CT) purposes.

I would be inclined to put all the expenses through in year one and contra them as 'Loans by Directors.' These loans can then be repaid as cash flow allows without affecting either individual or corporate taxes unless, of course, interest is paid. This approach also makes sure that no preliminary expenses are omitted or forgotten.

I am off to bed and will respond to any other follow up querries you may have in the morning. Please be so kind as to rate me before you leave the Just Answer site.

Customer: replied 10 days ago.
Thank you. If I put the majority of expenses into year one but later find there are other additional expenses that I have incurred that were not put through in year one, can I still include them in Year 2?
Customer: replied 10 days ago.
I have incurred business expenses over the course of a few years PRIOR to the trading start date and also DURING the trading period (paid for on my own personal credit card).So that I understand, please also kindly clarify:
Would both of the above expenses be classed as ‘Director’s Loan’ together and is this separate to the Administrative Expenses? Or are only the expenses incurred PRIOR to trading classed as Director’s Loan? If so, would the expenses incurred ‘During’ be classed as Administrative Expenses rather than Director’s loan?Thank you.

I only suggested a Directors Loan as a convenient method of getting the costs into the company, keeping reimbursement when it can be afforded. All setting up costs can be so treated.

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Customer: replied 10 days ago.
Please confirm regarding the first part of my question.If I put the majority of expenses into year one but later find there are other additional expenses that I have incurred that were not put through in year one, can I still include them in Year 2? I have some old files in storage which I cannot access at the moment so there will be more expenses that I cannot include until Year 2's accounts when I can access the files. Will this be ok?

Yes it will, perfectly OK. Accounts are invariable skewed by preliminary expenses in early years.

Customer: replied 10 days ago.
Thank you. Finally, can I please clarify if that is the same for personal business expenses incurred during Year 1's trading, can I claim them in later years if they are not included in Year 1's accounts?

Yes, providing you do not breach the 7 year rule.

Please don't forget my rating.

Customer: replied 10 days ago.
But is the 7 year rule only applicable to expenses incurred BEFORE trading started?

You can claim them from the company at any time convenient to you.

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Thank you for your support.