Can I claim Expenses incurred before Business Registration?
Pre-Trading Expenses Relief is a tax deduction for expenses you had before your business started trading. This also includes pre-incorporation expenses for companies incurred before the company was registered with CRO and Revenue. The relief applies to trades or professions, whether incorporated or not.
Which Pre-Trading Expenses can I claim?
Examples of pre-trading expenses are:
- accountancy fees,
- advertising costs,
- costs of feasibility studies,
- costs of preparing business plans,
- rent paid for the business premises,
- business insurance,
- cost of business travel.
Only pre-trading expenses which were wholly and exclusively expended for the purposes of the trade or profession are allowable. As with all claims for tax relief, claims for Pre-Trading relief may be selected for verification by Revenue at a later date.
How to claim Pre-Trading Expenses?
Pre-trading expenses of a trade or profession are allowable in calculating the trading income of that trade or profession once it commenced.
For the purposes of allowing the deduction, the allowable amounts are treated as having been incurred at the time the trade or profession commences.You can claim the Pre-Trading expenses relief in your first Income tax or Corporation Tax return.
What is the time limit?
A deduction is available in respect of pre-trading expenses which are incurred in the three years prior to commencement of the trade or profession.
Looking for low-cost accountant?
If you are a Start-up Company and require assistance with your Accounting & Tax, please leave your email address, we will be happy to assist.
Start-up Company Accounts
just €75+vat/month
- Bookeeping
- Bank Accounting
- VAT3 returns
- Payroll 1-5 employees
- Annual accounts
- Corporation Tax return
- B1 Annual Return to CRO
- Unlimited Free Consultations
- with Chartered Tax Accountant
You may also find useful:
- Corporation Tax Return - from €120
- Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.