Accounts & Start up costs

[Belly2009]

Hi,

I was wondering whether anyone would be able to help.

I was registered in February and trying to sort out my pre-reg accounts.......I received a start up grant from the council for £300.54 (resources I had bought etc - we had to produce recepts for this and an NCMA toolkit to the value of £150.00). How do I document this? Do I show it as an expense and then income for the cash I received? Also, could I just put Pre-Reg expenses eg £300.00 and not have to documentate it rather than list every single item i bought or resourced from toys I already had?

Sorry if its confusing.

Thanks

[sarah707]

One day a tax inspector might call to inspect your books... as you know we have to keep receipts for anything over £10... so you ahve to think about 5 years in the future when you have forgotten what all your expenses were for...

I would say list them :D

[Chatterbox Childcare]

I would add all the pre reg together and put them in as start up costs and then put in the grants to show the income. You can claim 10% wear and tear on the income too. if you make a loss it doesn't matter - lodge your tax return for 11/12 and then use the loss in 12/13