[Moderator David@stives]

Tosh

Can you scan the next page as well

[macmac]

Mike

That just about sums up what the accountant explained to me & they also produce a statement on my behalf.

So, can we take from this that if you are subject to a full investigation ( 6 years worth of books) anyone claiming a purchased round as tax deductable @ 100% in that given year may be subject to fines, interest etc?

Tony

[mikethechamois]

no your fine with that as its a legitimate business expense, you cant use it for your own personal use and wouldnt have bought it otherwise

its business develpment the same as marketing

they will tax you on the profits from that purchase

[macmac]

no your fine with that as its a legitimate business expense, you cant use it for your own personal use and wouldnt have bought it otherwise

its business develpment the same as marketing

they will tax you on the profits from that purchase

those whose acountants told them not to try and claim for goodwill were right

That confuses me even more I thought you were saying the opposite in your previous post?

So, if i buy a round (goodwill) for 3k, is that then 3k I can take off my year end turnover? i.e. I won't pay tax on that 3k?

A domestic round with no contracts is goodwill isn't it? I bought 3k worth of goodwill?

Tony

[mikethechamois]

thats right it comes off of your taxable profit

[macmac]

thats right it comes off of your taxable profit

How can it if it's goodwill? you just said accountants were right not to claim goodwill against tax?

p.s. I just re-edited my post before you posted, above

Tony

[macmac]

Bump

Any advance anyone?

Tony

[Tosh]

Personally, after what I've been reading, I reckon goodwill in our circumstances is not something you can claim on when you sell your business from a Capital Gains point of view.  I see no logic in that.

Nor is it an Expense, the tax man wants you to pay tax, so if you spend £3K on a round; I doubt he'd like you to add that against your other expenses and end up paying no tax at in that year.

So I reckon it's a Capital Expense, where you deduct an amount of it from your profit (reducing your tax liabilty) each year.

If I were in this position, that's how I'd treat it, and if I were investigated and it was picked up, I'd argue the case.

Much of the nitty gritty when it comes to tax can't be legislated for, there's just too many small transactions; you'd have tax books the size of libraries; so the tax man is pragmatic when it comes to stuff like this.