[macmac]

Tony, I believe this to be the case if you buy something that's expensive; I don't know what the threshold is; though I read £1K recently by someone on this forum.

Apart from my vehicle, I've never bought any single item of window cleaning over 1K, so I've never looked into it.

I think the threashold is 250 quid. trouble is, for me thinking is no good. It's all these little things added up that if you get investigated you could end up owing money!!

One example, my chartered accountant says a "bought round" is NOT tax deductable as you are only buying good will. Then I read others on here who have claimed the full amount of their "good will". So, who is right? If it's my accountant then many on here will owe unpaid tax + any fines + interest?

Tony

Tony

[Tosh]

Tony,

I remember recently reading an article in the papers about a restaraunt reviewer.

This guy eats in posh restaraunts, then writes about it, and a magazine pays him for his written articles.

Now is the food he eats in the restaraunt an expense?

Well, the food writer reckoned it was, so did his accountant; so it was submitted as an expense.

Subsequently he was investigated and the tax man decided that because the food he ate had a dual purpose (you have to eat to live), he couldn't claim it as an expense.

So in this instance the accountant was wrong!  I think when it comes to the 'nitty gritty' of certain stuff, there's no clear right or wrong; but what you can justify using your common sense.

I'll take a trip down to the libarary and the facts on Capital Expenses and how they apply to window cleaners; I'll do this next Monday.

Oh, and I reckon your accountant is wrong with regards to purchasing work from other window cleaners; that's got to be an legitimate expense!

[macmac]

Tony,

I remember recently reading an article in the papers about a restaraunt reviewer.

This guy eats in posh restaraunts, then writes about it, and a magazine pays him for his written articles.

Now is the food he eats in the restaraunt an expense?

Well, the food writer reckoned it was, so did his accountant; so it was submitted as an expense.

Subsequently he was investigated and the tax man decided that because the food he ate had a dual purpose (you have to eat to live), he couldn't claim it as an expense.

So in this instance the accountant was wrong!  I think when it comes to the 'nitty gritty' of certain stuff, there's no clear right or wrong; but what you can justify using your common sense.

I'll take a trip down to the libarary and the facts on Capital Expenses and how they apply to window cleaners; I'll do this next Monday.

Oh, and I reckon your accountant is wrong with regards to purchasing work from other window cleaners; that's got to be an legitimate expense!

If he was wrong will i be able to claim tax back? It was about 4.5 years back when I bought this work & 3.5 years when that years accounts were submitted.

Anyone?

Tony

[Feen]

Can't help with specifics, but I remember my accountant telling me last year that if I bought a new van in the year 08-09 the rules had changed and I could claim all in one year if it suited me, rather than writing it down by 25% per year. If this is the case, surely you could claim equipment to any value if it suited you?

[macmac]

Can't help with specifics, but I remember my accountant telling me last year that if I bought a new van in the year 08-09 the rules had changed and I could claim all in one year if it suited me, rather than writing it down by 25% per year. If this is the case, surely you could claim equipment to any value if it suited you?

I think there is a lower limit for some reason

Did you get your slx?

Tony

[Feen]

Can't help with specifics, but I remember my accountant telling me last year that if I bought a new van in the year 08-09 the rules had changed and I could claim all in one year if it suited me, rather than writing it down by 25% per year. If this is the case, surely you could claim equipment to any value if it suited you?

I think there is a lower limit for some reason

Did you get your slx?

Tony

Yeah on Tuesday. Had 2 hours with it in the snow this morning. Hoping for more time tomorrow. First impressions are "it's so light" ! Definitely a step forward, as is the wagtail flipper.

[Tosh]

If he was wrong will i be able to claim tax back? It was about 4.5 years back when I bought this work & 3.5 years when that years accounts were submitted.

Anyone?

Tony

Tony,

He was definately wrong.  You could spend money on Market Research and claim that back as a legitimate expense; FACT; I've been reading about it in a Daily Telegraph tax book in the library (but for reference only; so I couldn't take it out).  Market research must be more intangible than buying a round; so that's GOT TO BE an allowable expense.

When it comes to no clear defined rules about stuff, people often argue about 'the spirit of the regulation'; and when it comes to tax, if you spend money on your business, as long as it's within the 'spirit' - the ethos - of the rules, then you should be okay to claim it back; within certain parameters; in accordance with the regulations.

But I don't know about claiming back stuff from over four-years-ago; maybe you should give the tax man a call; or just do it anyway and argue the point if you ever get investigated?

[dai]

If he was wrong will i be able to claim tax back? It was about 4.5 years back when I bought this work & 3.5 years when that years accounts were submitted.

Anyone?

Tony

If you paid 5 grand for your round 4 years ago, and sold it in 20 years time for 25 grand, I bet the tax man would want his share of it.

[Tosh]

If he was wrong will i be able to claim tax back? It was about 4.5 years back when I bought this work & 3.5 years when that years accounts were submitted.

Anyone?

Tony

If you paid 5 grand for your round 4 years ago, and sold it in 20 years time for 25 grand, I bet the tax man would want his share of it.

Dai,

That's called Capital Gains; it would be difficult to work out exactly, but the profit from the sale would just count as turnover and be added to your normal window cleaning turnover and treated the same for tax purposes.

[dai]

If he was wrong will i be able to claim tax back? It was about 4.5 years back when I bought this work & 3.5 years when that years accounts were submitted.

Anyone?

Tony

If you paid 5 grand for your round 4 years ago, and sold it in 20 years time for 25 grand, I bet the tax man would want his share of it.

Dai,

That's called Capital Gains; it would be difficult to work out exactly, but the profit from the sale would just count as turnover and be added to your normal window cleaning turnover and treated the same for tax purposes.

Yes I'm sure, even if you ditched half the original round, built the rest up yourself, and was only selling goodwill.

[Tosh]

If he was wrong will i be able to claim tax back? It was about 4.5 years back when I bought this work & 3.5 years when that years accounts were submitted.

Anyone?

Tony

If you paid 5 grand for your round 4 years ago, and sold it in 20 years time for 25 grand, I bet the tax man would want his share of it.

Dai,

That's called Capital Gains; it would be difficult to work out exactly, but the profit from the sale would just count as turnover and be added to your normal window cleaning turnover and treated the same for tax purposes.

Yes I'm sure, even if you ditched half the original round, built the rest up yourself, and was only selling goodwill.

No actually, it's quite simple; if you buy a round, say for £100, you would count the £100 towards your expenses.

Then in X amount of years time, you sell some of your round, say for £1000, then that £1000 counts as PROFIT which you're taxed on.

The two transactions are totally seperate and each are counted as individual.

[Tosh]

No actually, it's quite simple; if you buy a round, say for £100, you would count the £100 towards your expenses.

Then in X amount of years time, you sell some of your round, say for £1000, then that £1000 counts as PROFIT which you're taxed on.

The two transactions are totally seperate and each are counted as individual.

Given this train of thought, it really is obvious that if you buy a round, then it can without a doubt be classed as an expense!

[dai]

No actually, it's quite simple; if you buy a round, say for £100, you would count the £100 towards your expenses.

Then in X amount of years time, you sell some of your round, say for £1000, then that £1000 counts as PROFIT which you're taxed on.

The two transactions are totally seperate and each are counted as individual.

Given this train of thought, it really is obvious that if you buy a round, then it can without a doubt be classed as an expense!

But what if you didn't claim it as an expense to start off with? And what if you claimed it was your pension fund?
I know a guy who sold his house to himself, moved out and bought another one, and classed the sale proceeds as part of his pension fund. That was allowed.

[Tosh]

No actually, it's quite simple; if you buy a round, say for £100, you would count the £100 towards your expenses.

Then in X amount of years time, you sell some of your round, say for £1000, then that £1000 counts as PROFIT which you're taxed on.

The two transactions are totally seperate and each are counted as individual.

Given this train of thought, it really is obvious that if you buy a round, then it can without a doubt be classed as an expense!

But what if you didn't claim it as an expense to start off with? And what if you claimed it was your pension fund?
I know a guy who sold his house to himself, moved out and bought another one, and classed the sale proceeds as part of his pension fund. That was allowed.

Dai, I don't know about that, but if you sell part of your window cleaning business, then that surely must count towards your turnover and treated - after expenses - as profit; which is taxable!