Look after the pennies and the pounds will look after themselves.
When you are about to start your business you need to start and think about not just looking after the pennies but recording them. Especially your expenses. This is because some of the expenses you incur when getting your business off the ground can be used to reduce your tax.
So get into the good habit of recording everything and saving your invoices and receipts as most of these will be tax deductible.
In fact this is a good habit to get into for when you are up an running.
Some of the pre trading expenses that you need to record and can claim are:
Heat and light
Telephone and broadband
Equipment for the business
Interest on business loans
N.B. All deductible expenses have to relate wholly and exclusively to the business.
Get it right first time and make sure you’re claiming the right expenses for your business with the HMRC ‘Business expenses for the self-employed guide’. This is an easy to understand introduction which covers pre-trading expenses, ‘day to day’ revenue expenses and capital allowances.