Can I claim sample costs before I start trading?
Yes, sample costs may qualify as pre-trading expenses if they meet HMRC’s conditions for revenue expenditure. Resale stock and capital purchases need different treatment. Keep evidence of the purpose, cost and purchaser. For sourcing and sample documentation, speak to Cambridge China Bridge.
Apply the conditions before claiming
HMRC allows qualifying revenue costs incurred within seven years before trading starts, provided they would have been deductible after commencement and are not otherwise deductible. They must satisfy the wholly and exclusively business-purpose test. Samples, courier charges and testing fees are candidates for review, rather than automatically allowable expenses.
Classify the purchase by its actual use
Advance purchases of resale stock fall outside this pre-trading relief because their costs enter the trading profit calculation instead. Capital expenditure also falls outside it; separate capital allowance provisions may apply. Ask your accountant to classify evaluation samples, saleable goods and reusable equipment separately. A supplier’s description of everything as ‘samples’ does not explain how you used it. For buying checks, see stock-lot purchases.
Build an evidence file for each cost
The pre-trading guidance sets eligibility tests rather than a sample-specific document checklist. As a practical file, keep the supplier invoice, payment evidence, order correspondence, sample specification and evaluation or laboratory report. Record the purchaser, date, currency, business purpose and what happened to the sample. Request separate invoice lines for goods, delivery, testing and tooling. Our supplier payment guide covers payment checks.
Check who incurred the expense
Relief belongs only to the person who incurred the expenditure and commences the trade. If you bought samples personally but intend to trade through a limited company, ask your accountant to review the arrangement before assigning the cost to the company. Keep original purchaser details and any reimbursement records; do not rewrite the purchase history to fit the intended claim.
Prepare a schedule when trading starts
Qualifying expenditure is treated as incurred when the trade first starts. Prepare a schedule for your accountant separating proposed pre-trading expenses, stock and capital items, with supporting files and the proposed commencement date. Flag private use, refunds and costs already recorded elsewhere. Keep the sourcing budget separate from the tax classification: our landed-price guide helps assemble the commercial costs.
Frequently asked questions
Can I claim samples bought before trading?
Potentially. Their purpose and treatment must meet HMRC’s pre-trading revenue expense conditions. Keep evidence of evaluation use and ask your accountant to distinguish samples from stock or capital assets.
How far back can I claim pre-trading expenses?
Qualifying costs must have been incurred within seven years before trading starts. They must also meet the other eligibility conditions.
Can I claim my opening stock as a pre-trading expense?
No. HMRC excludes advance purchases of trading stock from this relief because their costs are deductible through the trading profit calculation instead.
Can my company claim samples I bought personally?
Do not assume so. HMRC limits relief to the person who incurred the expenditure and starts the trade. Give your accountant the original invoices, payment trail and any reimbursement details.