Goodwill on Incorporation
Posted: Mon Jun 19, 2017 6:38 pm
Hi
I have just taken on a client - minicab service, quite a large business of 4 offices. Client has incorporated about 16 months ago and looking at the accounts there is no goodwill in the accounts for the first year.
I propose to make an entry in this years accounts for a valuation of say 20k, even though I personally believe it will be more. Assets I will not transfer over as they would ave been written off.
Do I need to get HMRCs agreement on this valuation. I appreciate that the business will not be allowed to write off the goodwill and also not obtain ERs relief.
Is there anything else I am missing please?
I have just taken on a client - minicab service, quite a large business of 4 offices. Client has incorporated about 16 months ago and looking at the accounts there is no goodwill in the accounts for the first year.
I propose to make an entry in this years accounts for a valuation of say 20k, even though I personally believe it will be more. Assets I will not transfer over as they would ave been written off.
Do I need to get HMRCs agreement on this valuation. I appreciate that the business will not be allowed to write off the goodwill and also not obtain ERs relief.
Is there anything else I am missing please?