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Where Taxpayers and Advisers Meet

Franchise/royalty fees accounting and tax

JoBo1
Posts:16
Joined:Wed Dec 18, 2019 1:25 pm
Franchise/royalty fees accounting and tax

Postby JoBo1 » Tue Dec 24, 2019 11:10 am

Hi
A sole trader started trading as a franchise (service industry) on 1 January 2019 and ceased trading 31 May, so tax return spans 2 tax years.

1) Can I amortise the franchise fee over the 2 years? Is this allowable as a deduction for tax for a sole trader? (I understand it may be different for a Limited co)

2) Ongoing % weekly royalty fees - I have included under cos. Is this correct?


Appreciate any help you can give.

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