When people start a business they are often unprepared for all the additional work that is involved, in addition to their main business role that they set up to undertake.
One of the reasons people start a business is often to have more free time, but they can usually find that they actually have much less free time than they would have hoped for – particularly initially when significant time may have to be spent on marketing and developing systems.
Thankfully there are always tax reliefs available that you can take advantage of, something that I will cover in the coming posts.
However, when considering the start-up situation, there are two specific tax reliefs that may be of use:
- Pre-trading expenditure – there may be expenses incurred before you actually start trading. There is relief available for these, provided they are normal allowable business expenses and are incurred less than seven years before you start trading.
- Loss relief against other income – when starting a new sole trade self-employed business initially you could have losses. There is relief available to offset these against other income, perhaps resulting in a tax refund that could be useful in helping your business to grow by being reinvested. The business must have been carried on under a commercial basis in order to qualify though.
Please do make contact if you would like to find out more – there is no charge for an initial meeting or consultation via email.