[Leeds]

Hi Guys,

I'm buying a domestic round. What would i need from the other window cleaner to put on my books, so i can write it down as an expense? Like an invoice or something?

Thank you

Meridion

[colin purewater]

Just a receipt stateing what you have bought

[Leeds]

Just a receipt stateing what you have bought

Thank you Colin.

Will a hand written receipt do? (This guy isn't technical haha)

[Jonny 87]

Hi Guys,

I'm buying a domestic round. What would i need from the other window cleaner to put on my books, so i can write it down as an expense? Like an invoice or something?

Thank you

Meridion

Technically buying a round cannot be counted as a business expense even with a receipt.

If your accountant plays exactly by the law that is.

[Leeds]

Hi Guys,

I'm buying a domestic round. What would i need from the other window cleaner to put on my books, so i can write it down as an expense? Like an invoice or something?

Thank you

Meridion

Technically buying a round cannot be counted as a business expense even with a receipt.

If your accountant plays exactly by the law that is.

Really? How Come?

[Jonny 87]

I forget actually how it was explained now, but my accountant worded it along the lines of that your not physically buying anything that hmrc can see as an asset.

Essentially just a piece of paper with names and adresses isn't something you can claim as a business expense.

Mayb someone else on here more clued up can explain it better?

My accountant is always spot on with these kinds of things though and does things exactly by the book.

[Smudger]

i think its because you are buying "goodwill" now of course he sold you window cleaning equipment on the receipt this would something you could use i think

[steve rix]

Tell the seller to give you a reciept for equipment, ladders , poles etc and put that through the books

[Leeds]

i think its because you are buying "goodwill" now of course he sold you window cleaning equipment on the receipt this would something you could use i think

As a matter of fact, I am actually buying some gear off him as well. Might just get him to include the round in the price.

Meridion

[Jonny 87]

Just be careful if you ever get investigated by the tax man. Lol

[Leeds]

Just be careful if you ever get investigated by the tax man. Lol

It works out alright though, cos he is selling me a Water fed system with a HEAVY discount (friends), so i'll say to him to sell me it for full price, and that should cover some of the cost right?

Meridion

[Smudger]

Just have a list of equipment you buy off him with the price of the round,

Who are you to know the equipment is only worth £36.75 when paying £6000

Point the tax man in the general direction of ionics for vastly overinflated prices 😄

Darran

[clarkson]

Hi
I don't think that's quit right.

It is good will and although not a tangible asset it is an legitimate expense. It is not a
List of numbers it is a business transfer with a customer base.

I do think though it is put on your balance sheet as a capital expense . Not straight of your profit and loss

With regards to receipt as long as it has name and address I think it would be fine although a payment trail ie pay by cheque or bank transfer so you can prove the money changed hands would be good

[Spruce]

Why not phone the tax man and find out then you will know for sure.

I also know that it is classed as 'goodwill' and not tax deductable as I was told that. However, as Darran says, it works to your benefit as you won't pay tax on it at the other end when you decide to sell it in the future. It should be worth a lot more 'goodwill' then.

[PoleKing]

Not to contradict anyone.
And I can only speak from my own experience buying my round nearly 12 years ago (so things may have changed)
I could not write down the cost of the round as it wasn't a tangible asset.
But the guy who sold it to me-he had to pay tax on the money I paid him as the money I paid him was income.
That's what we were told. So we didn't do that.
On paper, I bought the van, system, equipment etc for the total cost.
The round wasn't even mentioned in the paperwork.

[8weekly]

It sounds extremely unlikely that you can't offset the cost of buying a business off someone. I do my own tax return and I would have no hesitation in adding it as an expense. I am sure you can't add it as a capital expense, but how does it differ to paying a canvasser to go out and knock you up a round?

[Jonny 87]

It sounds extremely unlikely that you can't offset the cost of buying a business off someone. I do my own tax return and I would have no hesitation in adding it as an expense. I am sure you can't add it as a capital expense, but how does it differ to paying a canvasser to go out and knock you up a round?

It does seem a bit unfair, but too that many accountants can't all be wrong.

Mayb you can't even deduct a canvassers wage. I'm not sure.

[Roy Harding]

So If you bought for instance a round for a £1,000 you cant claim it?

Then 3wks later you sold it for £4,000 you would not pay tax?

Slightly different I know but I told my account I had sold 11 doberman puppies for £500 each. He said if the tax man wanted a part of that, then they would have to allow all keep of the dog, including the purchase price etc for the last 3 years.

Roy

[Smudger]

Selling a litter of pups can easily be classed as a hobby. So the situation is different but of course if you were claiming the vet bills, food etc as expenses then yes you would need to declare the sales as income.

When buying a biz, you can only buy physical things, ie premises, stock, equipment in the customers or contracts are only viewed in relation to the value of that biz.

Customers may leave or go elsewhere so cannot be included as an expense

I worked for a company who were brought out for 8 million pounds, the premises was worth about 1 million, machinery a further 1.5 million but we had a full order book and work totalling 6 million
We were brought by a rival US company, and instantly closed down us down.
Basically they paid well over the top to take our work and kill off a rival company, the two owners were happy as they sold a company valued at around 3 million for 8
The tax man didn't go chasing about overpaying for a factory unit and machinery.

There is more than one way to skin a cat.

Darran

[Plankton]

I was told I couldn't include the Goodwill as I had no receipt although if I were to sell it then it would then count as income.
If your buying round and equipment from your mate and asking for a receipt then he would have to include it in his books.