Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Ian W on February 14, 2008, 07:40:26 pm

Title: Buying work
Post by: Ian W on February 14, 2008, 07:40:26 pm
I am considering buying some work. Does anyone know how the tax man treats this? Is it considered capital investment or an expense?
Title: Re: Buying work
Post by: pjulk on February 14, 2008, 08:12:32 pm
Neither as far as i know you cant claim for goodwill.
If you buy a round thats what you are buying.

But im not an accountant so may be wrong

Paul
Title: Re: Buying work
Post by: Ian W on February 14, 2008, 08:49:34 pm
So, nothing can be claimed back.  :o

Oh well...  :'(
Title: Re: Buying work
Post by: Paul Coleman on February 14, 2008, 10:55:52 pm
So, nothing can be claimed back.  :o

Oh well...  :'(

If it's buying a round then it's goodwill and I understand it can't be offset against your tax bill.
Not sure if the same applies to "canvassing", "consultancy", or "marketing" fees though.  Depends how much you want to stretch a point I guess.
Title: Re: Buying work
Post by: Ian W on February 15, 2008, 05:43:59 am
I want to keep everything above board, so I won't stretch it.
Still, I'll be getting an accountant this year, so that might help me save a few bob!  ;D
Title: Re: Buying work
Post by: windowwashers on February 15, 2008, 05:51:29 am
I want to keep everything above board, so I won't stretch it.
Still, I'll be getting an accountant this year, so that might help me save a few bob!  ;D
Time is dragging today good morning Ian

A good accountant is worth every penny  ;)
Title: Re: Buying work
Post by: Ian W on February 15, 2008, 06:28:11 am
Morning Ian.
Yes, I decided with the jump into full time self employment that I should get an accountant. There have been plenty of other posts on this, and nobody seems to have regretted it!  ;D
Title: Re: Buying work
Post by: Ian Rochester on February 15, 2008, 06:30:48 am
Providing you get a receipt from the seller, then there should be no problem claiming it as an offset against your tax
Title: Re: Buying work
Post by: Ian W on February 15, 2008, 08:06:33 am
Thanks Ian (Lionheart).
No doubt the accountant will sort this out now, but I was trying to get some figures sorted out to show how much it might benefit me year by year.
Any idea what percentage could be offset?
Title: Re: Buying work
Post by: matt on February 15, 2008, 01:53:03 pm
My accountant said and i qoute " you cannot put the payment against your books, as its just a goodwill payment and you have nothing to show for it "

Title: Re: Buying work
Post by: Paul Coleman on February 15, 2008, 04:55:47 pm
My accountant said and i qoute " you cannot put the payment against your books, as its just a goodwill payment and you have nothing to show for it "



Although I've never bought a round myself, I ran this past my accountant after you posted this a while back Matt.  He said pretty much the same thing as your accountant.
Title: Re: Buying work
Post by: Central Window Cleaners on February 15, 2008, 05:00:39 pm
When I bought my first round I bought the whole business including the ladders and tools etc. and my accountant has put the through my books and it deprieciates over 10 years
Title: Re: Buying work
Post by: tompoole on February 15, 2008, 05:03:00 pm
ian

Not sure about buying work. have you thought about leafleting on a regular basis. i have just started up and have leafletdrops planned for the whole year in different places and villages. that way you can pick and choose your work and have a bit more control.

Put the first lot out this month and have had a steady trickle of work. not ideal if you want instant cash but i would imagine its a lot cheaper.

tom
Title: Re: Buying work
Post by: Ian W on February 15, 2008, 11:19:05 pm
Sorry for the lack of replies - I had to visit my parents tonight. My dad has just been told he has to give up driving and they are a bit fed up.

Well, the round I am looking at is being sold with some wfp equipment. Perhaps I will be lucky enough to be able to put some or all of it by the tax man.

Got an appointment with an accountant on Tuesday, so will have a quick chat with him then.

I would like to canvas for my own work, but with 4 other mouths to feed, I need instant income really.

I did think about taking a loan and using that as "wages" while I built up work, but then I was concerned that I might not be able to get as much as we needed before the money ran out.