[jo5hm4n]

So my "friend" is thinking of buying several window cleaning rounds.  Is there a way he can claim this as a business expense which is tax deductable?  His accountant, said there isn't if it's put through as buying a window cleaning round.  Do any of you on here have any advice for what you have put window cleaning rounds through as before so that you can claim for them?


Thanks

[M & C Window Cleaning]

I can never figure that out. Buying a round is not a legitimate business expense but I recon when you sell a round it's considered profit and you'll be taxed on it.

[Stoots]

Marketting

[Og]

Surely it's capital expenditure, as it's putting value on the business? I'm on the rhubarb wine mind.

[DaveG]

Paying a canvasser is tax deductable.   

[Spruce]

I was told we can't claim the purchase of a round as a business expense as it is goodwill.

It appears that Limited companies can claim goodwill but its a complicated process - it isn't straight forward.

http://taxguide.co.uk/content/goodwill-tax-deductible

[Ian101]

I can never figure that out. Buying a round is not a legitimate business expense but I recon when you sell a round it's considered profit and you'll be taxed on it.

I have a friend who just sold several very desirable rounds - he thinks it will be classed as a capital gain . I .... sorry meant he thinks your CGA tax allowance is circa £11000 as its goodwill basically

 

[jo5hm4n]

Paying a canvasser is tax deductable.   

Exactly, but how do you get around that one?  Just put the invoice down for canvassing services?  How can you properly justify that to your accountant so they put it through the books etc...

[jo5hm4n]

I can never figure that out. Buying a round is not a legitimate business expense but I recon when you sell a round it's considered profit and you'll be taxed on it.

I have a friend who just sold several very desirable rounds - he thinks it will be classed as a capital gain . I .... sorry meant he thinks your CGA tax allowance is circa £11000 as its goodwill basically

 

[Ian101]

Im a member on uk business forums so will ask the question in their accountancy section

[M & C Window Cleaning]

It will be interesting to hear their reply.

[Ian101]

It will be interesting to hear their reply.

will keep us all updated

[Ian101]

just posted this.

Hi Im asking this question on behalf of a window cleaning forum and some of its members.

 Occasionally for various reasons such as retirement, moving areas or too much work a window cleaner will sell off some rounds to another window cleaner - basically its just a list of names and addresses on a piece of paper.

 The common opinion on this is the buyer cannot claim this cost as a business expense as in the past accountants have told them its "goodwill" and not tax deductible however the person selling the round has treated it as a sale so put it into their figures for tax purposes.

 I think a seller could claim is against their CGT allowance which I think id circa £11000.

 The best thing is for us to speak to our accountants we know but we don't all have that luxury so any info would be gratefully received.

[Clever Forum Name]

Buy the round with some equipment.

[SeanK]

Buy the round with some equipment.

Wont make a difference as the equipment will have to go under a different expense which you will need a receipt for.

[robert mitchell]

Buy the round with some equipment.

As i understand it if you sell it with some equipment , for instance a van and system , it is then classed a s business being sold rather than just goodwill .

[Clever Forum Name]

Buy the round with some equipment.

As i understand it if you sell it with some equipment , for instance a van and system , it is then classed a s business being sold rather than just goodwill .

Correct.

[duncan h]

Its all so wrong. If it brings in a taxable income, then you should be able to claim it

[SeanK]

Its all so wrong. If it brings in a taxable income, then you should be able to claim it

Its a strange one, I was thinking maybe its down to the fact that the money earned is not guaranteed, but at the end of the
day you have still paid out which will mean you have less taxable income at the end of the tax year.
Maybe it falls under gambling, but then you could say the same about advertising/marketing which guarantees nothing for the
cost.

[Stoots]

Buying s round or paying  canvasser isn't tax deductable.

However paying for marketting is.

Use your noggin. It all boils down to what is on your invoice/receipt.