Money spent on a buying a round - how to submit your tax return

[sdrah]

I have bought few small round in the past and the accountant said I can not put it down on my business expenses even if I have a hand written letter / receipt from the person who sold me the round ...

Now I may consider buying a big round - let say £10 000 - and I cant just do as before as is quite a lot of money - it should be a way to use them as business expenses . what's the right way to do it thx

 

[MillerBHA]

Hi Sdrah

If you buy a business you can't

then claim it as a self employed business expense seems a bit strange but that's how it is

Regards

Tony

 

[sdrah]

thanks Tony

not sure how true it is - but a friend of mine have advised me to get a kind of paper / contract to be signed by each customer at the handover just as a proof that I visited them on xx day - and then divide the amount spent on the round to the number of customers - for example £10 000 to 400 customers and you get £25 that's the cost you can claim for your first visit when signing that paper which you can prove ?!

: ) doesn't sound right anyway ...

 

[MillerBHA]

Yeah I'm not sure that's a way round it

but am sure your accountant could advise you

Good luck

 

[Gavin]

Hi SdrahIf you buy a business you can't

then claim it as a self employed business expense seems a bit strange but that's how it is

Regards

Tony

Odd I would have thought you could clame that but then again I guess its not an expence really as your essentially gaining from it.

 

[MillerBHA]

Yes Gav most people including myself

thought that is the case but as you said it's not actually an expense,I don't know why but apparently not my 20yr old son bought a small business and when I said to him he could claim it as an expense he said no dad you can't

I said your talking rub bid he said for me to call my accountant if I didn't believe him which I did only to have it confirmed that he was right seems strange to me tho

 

[mr shine]

i wonder are the hrmc as flexible when it comes to the person who sold a round and didnt declare it , personally id take a second opinion as some accountants seem to know more ways around things than others , all legal and above board of course /emoticons/biggrin.png

 

[sdrah]

that's what i was going to say - when you pay £10k for a round you can't call it an expense but once you ve sold it I bet HMRC will want their %