I am completing a tax return for a self employed window cleaner. Durng the year he purchased a window cleaning round off another sole trader for £3k. Is this tax deductable under AIA? If not, how should it be recorded on a Self Assessment?
I would suggest that he has purchased the goodwill of the business and you should follow the accounting procedures for goodwill. I believe that goodwill does not qualify for aia but should be amortised over the useful period of goodwill in the business Edited at 24 Jun 2012 03:41 PM GMT
I agree with you Ian - the AIA is not designed with goodwill in mind.
Kind Regards
Karen Jewell
Karen Jewell Ltd
Bookkeeping~Accounts~Payroll
www.karenjewellltd.biz
