Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Ryan @ Transparent, Carlisle on November 29, 2012, 04:58:26 pm

Title: Buying a round next few weeks
Post by: Ryan @ Transparent, Carlisle on November 29, 2012, 04:58:26 pm

For the £???? Its costing me, can I claim that as an expense?

Cheers

Title: Re: Buying a round next few weeks
Post by: DMC Window Cleaners Ltd on November 29, 2012, 05:14:06 pm

think you might need a new accountant with this question

Title: Re: Buying a round next few weeks
Post by: davids3511 on November 29, 2012, 05:16:23 pm

Yes, once it's at 'arms length' ie not from your wife/brother/dad.

Title: Re: Buying a round next few weeks
Post by: g.brookes on November 29, 2012, 05:20:23 pm

my accountant made it tax deductible for me

Title: Re: Buying a round next few weeks
Post by: DMC Window Cleaners Ltd on November 29, 2012, 05:23:04 pm

its a business expense just like fuel, and any other expense

Title: Re: Buying a round next few weeks
Post by: bobplum on November 29, 2012, 07:11:09 pm

not as an expense
i asked the same question at a HMRC day and they were sure you could not claim it.
an expense is something you would spend in the course of your work/business..not to acquire a business,you may be better getting a loan and off setting it against capital etc
 

Title: Re: Buying a round next few weeks
Post by: tompoole on November 29, 2012, 07:40:41 pm

Yes Would go down as a something like a capital expense or directors loan
and you draw it back
Tax free as its a loan from you to the company.
But your accountant will be the best person to talk to.
So yes the company will owe you what you paid for it.

Title: Re: Buying a round next few weeks
Post by: DMC Window Cleaners Ltd on November 29, 2012, 07:58:43 pm

Well that depends on who pays for it if the company has the money it's just an expense if the company borrows money of you it's a directors loan but remember all that's for a ltd company if you a sole trader then it would be a tax deductable amount

Title: Re: Buying a round next few weeks
Post by: king marko on November 29, 2012, 08:05:50 pm

Isn't it classed as an asset rather than expense?

Title: Re: Buying a round next few weeks
Post by: PoleKing on November 29, 2012, 08:35:34 pm

Absolutely 100% you can't.
I asked before I bought my round.
It's too open for abuse.
Sorry.

www.laneswindowcleaning.com

Title: Re: Buying a round next few weeks
Post by: Ian101 on November 29, 2012, 08:53:59 pm

Your buying goodwill.

Goodwill can be written down every year.

If you come to sell it though for more than its written down value then you will be liable to pay tax on the difference between its written down value on the books and what you acheive for it ... however if you were to just drop the customers then you will be liable for nowt.