[Ian W]

I am considering buying some work. Does anyone know how the tax man treats this? Is it considered capital investment or an expense?

[pjulk]

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

[Ian W]

So, nothing can be claimed back. 

Oh well... 

[Paul Coleman]

So, nothing can be claimed back. 

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.

[Ian W]

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! 

[windowwashers]

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! 

Time is dragging today good morning Ian

A good accountant is worth every penny 

[Ian W]

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! 

[Ian Rochester]

Providing you get a receipt from the seller, then there should be no problem claiming it as an offset against your tax

[Ian W]

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?

[matt]

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 "

[Paul Coleman]

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.

[Central Window Cleaners]

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

[tompoole]

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

[Ian W]

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.