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ronnie paton

  • Posts: 3245
buying work not allowed to be put through expenses?
« on: April 06, 2008, 08:02:21 pm »
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

Re: buying work not allowed to be put through expenses?
« Reply #1 on: April 06, 2008, 08:35:35 pm »
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

Re: buying work not allowed to be put through expenses?
« Reply #2 on: April 06, 2008, 08:51:23 pm »
if buying work get a receipt it is capital investment so a percentage goes through 50% first year 25%ithink thereafter

Moderator David@stives

  • Posts: 8829
Re: buying work not allowed to be put through expenses?
« Reply #3 on: April 06, 2008, 09:03:10 pm »
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

Re: buying work not allowed to be put through expenses?
« Reply #4 on: April 06, 2008, 09:06:53 pm »
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

Re: buying work not allowed to be put through expenses?
« Reply #5 on: April 06, 2008, 09:20:15 pm »
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

  • Posts: 3245
Re: buying work not allowed to be put through expenses?
« Reply #6 on: April 06, 2008, 09:30:00 pm »
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

  • Posts: 8829
Re: buying work not allowed to be put through expenses?
« Reply #7 on: April 06, 2008, 09:33:53 pm »
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

Re: buying work not allowed to be put through expenses?
« Reply #8 on: April 06, 2008, 09:50:08 pm »
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

Re: buying work not allowed to be put through expenses?
« Reply #9 on: April 06, 2008, 09:52:20 pm »
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 ;D

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

Londoner

Re: buying work not allowed to be put through expenses?
« Reply #10 on: April 07, 2008, 07:26:08 am »
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

  • Posts: 2368
Re: buying work not allowed to be put through expenses?
« Reply #11 on: April 07, 2008, 07:54:15 am »
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

  • Posts: 8829
Re: buying work not allowed to be put through expenses?
« Reply #12 on: April 07, 2008, 07:58:03 am »
Simon

correct

Ian W

  • Posts: 1161
Re: buying work not allowed to be put through expenses?
« Reply #13 on: April 07, 2008, 11:06:02 am »
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.
Do all the good you can, and make as little fuss about it as possible.
Charles Dickens

*foxman

  • Posts: 250
Re: buying work not allowed to be put through expenses?
« Reply #14 on: April 07, 2008, 03:00:13 pm »
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.