Sole Trader - claiming expenses

Hi I just started as a sole trader. I'm also a paye worker.
I'm doing websites.

3 questions:

I have set up a trading as bank account to keep the finances seperate from my personal accounts. I had to pay for a few things to get set up on my personal credit card and personal bank account. How can I get this back from the business?

I have to buy web hosting and domains for my customers websites.
When I bill the customer I include these as items on the invoice.
Can these be classed as business expences?

Is it reasonable to claim my Telephone and Broadband through the business.

Not an accountant ( or a book keeper) so take with pinch of salt:

1. I guess you show them in your accounts as paid by petty cash- therefore you have a credit in petty cash and then you pay out the credit to yourself.
2. No, I don't think you can claim these outlay as YOUR business expenses as you reclaim these from the client- this is their expense.

thebiz said:

Is it reasonable to claim my Telephone and Broadband through the business.

Click to expand...

Yes. However if you are using the phone and broadband for personal use you shouldnt claim in full.

Best talk to your accountant on this one.

thebiz said:

I have to buy web hosting and domains for my customers websites.
When I bill the customer I include these as items on the invoice.
Can these be classed as business expences?

Click to expand...

If I got you right those could be claimed as expences under "Purchase of goods for resale" clause, so those amounts are not taxable.

I'm sure you will be charging a little extra for the hosting than what you pay for them. So include the cost of purchasin the hosting as an expense and the money you receive as an income. Effectively they will cancel each other out and leave the little extra profit you charged which is taxable.

You can definatley claim back the expenses you paid from your credit card. Make sure you keep receipts for record of payment.
When the business builds up funds you can pay yourself back for what was charged on your credit card and include the receipts as evidence of them being a business expense


Best of luck with the new business.

Thanks everyone for the advice - Great answers.