[ronnie paton]

if you buy work you cant put it through business expenses...think this is correct so can i pressume if i sell work i dont pay tax on the money i sell for?

[DASERVICES]

Ronnie,

Have never done it before but if you buy a round then you should be able to claim it off tax, the same when selling as it will be taxable.

Each Tax Office has a business advisor, worth speaking to them as that is where I get my info from.

Doug

[mci services]

if buying work get a receipt it is capital investment so a percentage goes through 50% first year 25%ithink thereafter

[Moderator David@stives]

Ronnie

You are correct the cost of buying a round is not tax deductable.

You do get taxed when you sell, if you sell at a profit.

If you employ the services of a canvasser then that is a tax deductable expence

[macmac]

Ronnie

You are correct the cost of buying a round is not tax deductable.

You do get taxed when you sell, if you sell at a profit.

If you employ the services of a canvasser then that is a tax deductable expence

Correct.

Tony

[mci services]

if buying work get a receipt it is capital investment so a percentage goes through 50% first year 25%ithink thereafter

ok i am wrong it seems i will be having a word with my advisor from busness gateway as he said it was fine

[ronnie paton]

stu iv heard that said b4 but my accountant told me different!i need to find out really.

so if isell for the same price there is no reason to tell the tax man!

[Moderator David@stives]

I thing there is a special rule where you can claim the cost of a round over a 20 year period. It has got a name, i cant think of it at the moment.

 buying goodwill is different than buying canvassed work , it is all in the smallprint.

[mci services]

i was under the impression that if i buy say spend say £500 i could claim £250 in the first year then 25% of 250 second year until it depreciates to nil
ie
year one £250
year two £187.5
year three£140.62
and so on
but not sure i will check tomorrow

[DASERVICES]

If I was buying work to start off I would expect to net it off my profit.
A thought came to my mind, not very often that happens

If you buy a round and then people cancel then you should be able to put that through as bad debt!!!!

[Londoner]

The taxman classes bought work as goodwill which is not tax deductable because it doesn't physically exist.

However, you can negotiate with the taxman. They are not totally inflexable.

I wonder how these businesses get on that buy and sell mailing lists for example. Thats really what you are buying, a list.

[SherwoodCleaningSe]

If you buy work from a canvassing company, then surely your paying them for a service, to go out and canvass for you, so that must be tax deductable?

Simon.

[Moderator David@stives]

Simon

correct

[Ian W]

I had a chat with an accountant about this and he told me that it isn't tax deductible, but if and when it is sold you can claim your investment back and it is 'index linked' in some way. So work that may cost you £2000 today, may be worth £10000 in 10 years. I think he said that you would pay tax on the profit made when selling.

[*foxman]

Just get who ever you buy the work off to give you a reciept with 'for canvassing services' as the item. Then you can put it through no probs.