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Where Taxpayers and Advisers Meet

Easy Question

Herbs16
Posts: 73
Joined: Wed Aug 06, 2008 3:53 pm

Postby Herbs16 » Wed Oct 24, 2007 4:08 am

Hi, I have just purchased a hair salon as an individual for £20k, now trading as a sole trader. This is goodwill only, how do I show this on the accounts?
Thanks

Pollard&Co
Posts: 70
Joined: Wed Aug 06, 2008 4:00 pm

Postby Pollard&Co » Wed Oct 24, 2007 4:22 am

It will be shown on your balance sheet with the fixed assets.

have you purchased the hairdressers already? with £20k goodwill it may be have been advantagous for tax reasons to purchase through a ltd company?

Herbs16
Posts: 73
Joined: Wed Aug 06, 2008 3:53 pm

Postby Herbs16 » Wed Oct 24, 2007 4:26 am

hi
thanks, already purchased, how is it shown on the p and l though?

Pollard&Co
Posts: 70
Joined: Wed Aug 06, 2008 4:00 pm

Postby Pollard&Co » Wed Oct 24, 2007 4:36 am

shouldnt you know the answer to this having your own online accountancy firm?

pindykb
Posts: 17
Joined: Wed Aug 06, 2008 4:00 pm

Postby pindykb » Wed Oct 24, 2007 5:08 am

hi how do you know he/she has an online accountancy firm? i dont get it

Pollard&Co
Posts: 70
Joined: Wed Aug 06, 2008 4:00 pm

Postby Pollard&Co » Wed Oct 24, 2007 5:13 am

because he fishing for business on the thread titled 'Declaring taxable income' contact onlineaccountancy@yahoo.co.uk for a quote, not sure that I would use his services!

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Postby Peter D » Wed Oct 24, 2007 5:42 am

Yep I spotted that. Makes you wonder doesn't it ??
Regards Peter

Balmain
Posts: 203
Joined: Wed Aug 06, 2008 3:44 pm

Postby Balmain » Wed Oct 24, 2007 6:33 am

Dear Pollard&Co

Yes well spotted.


Dear Herbs16,

You state this is an easy question with the title,Â… you are in fact correct, it is easy.

Balmain

Balmain
Posts: 203
Joined: Wed Aug 06, 2008 3:44 pm

Postby Balmain » Wed Oct 24, 2007 8:05 am

A quick search of this site provides to following info

1)Herbs16 is a NZ national with UK property
2)Has a contract in saudi arabia from 1/7/07 to 30/6/09 with 84 days holiday in the uk
3)Had her mothers property transferred to her 2 years ago.
4)Web designs for US clients
5)Name is Colette
6)Has associated companies with her wife?
7)Renders taxation advice, based on others peoples postings on here.

Balmain

PS far too much time on my hands!!!!


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