I'm ok as far as I know regarding assets and stock, but just a few questions. If the transfer takes place on 1st as planned, should any tax/cgt arising be included in the 19/20 or 20/21 self assessment? Client is 1st April - 31st March but I'm conscious that the tax year runs to 5th April. I remember getting caught several years ago when another client started as a sole trader and I was doing her year 1st April - 31st March but unbeknown to me at the time they wanted the first tax return 1st-5th April of the first year trading.
2nd question is determining Goodwill, which I understand has to be at MV. As a guide t/o is around 100k and a profit of around 15k. Stock is around 70k built up over 2 years. Is it prudent to suggest the client seeks an independent valuation?
Regarding trade creditors, my thoughts are to transfer the sum o/s to the DLA and have a dummy creditor account to offset it, is that feasible?
Client bought a brand new van on finance in November last year. In her name so I'm thinking of it being rented to the Company and the client personally paying off the loan
(Just for reference the Ltd Co has been set up in the same name as the current t/a name)
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Ah, now, given Ive just stressed this point on the tail end of such a plan, so to speak, I have to ask the exact same question......does your PII cover such advice?
There is a hell of a lot to think about on top of what you have already listed.
Have you considered buying in the tax advice? Or, if your PII will cover this, considered a sub to Ross Martin as there is some useful info to be had there?
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Ah, now, given Ive just stressed this point on the tail end of such a plan, so to speak, I have to ask the exact same question......does your PII cover such advice?
There is a hell of a lot to think about on top of what you have already listed.
Have you considered buying in the tax advice? Or, if your PII will cover this, considered a sub to Ross Martin as there is some useful info to be had there?
Hi Joanne
You've answered the first paragraph with your second one
I've only done one before for a taxi driver, which was extremely simple, but if there's a lot more to it on this one then I'm not qualified to undertake it. Buying in tax advice is definitely a consideration.
Funnily enough I landed on Nicola's site when doing a bit of googling re the creditors, but would need to check the PII situation.
Thanks for the advice, glad I asked rather than getting started then coming unstuck further down the line.
Caron, thank you as well, I'm qualified by experience so don't have a professional body as yet, although AAT hopefully which I really need to push on with.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Caron, thank you as well, I'm qualified by experience so don't have a professional body as yet, although AAT hopefully which I really need to push on with.
As an update I've been in touch with my PII insuers and I'm covered to do it, but obviously I wouldn't want to dive in without knowing the full ins and outs. I'm at the client's today and will discuss how they want to proceed. Out of the two suggestions Joanne made I'd prefer the Nicola Martin-Ross route if that will give me the sufficient knowledge I need to do it right, although I'm not averse to buying in tax advice if that would be a better option.
Does anyone know a price guide of what I would be looking at if buying tax advice? It doesn't have to be exact and I'm happy to be PM'd if someone with the knowledge would prefer to do that, but just need to know so I know what to quote the client.
I
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
