Hi Guys,
I recently purchased a Franchise to be part of a PA network. I registered as self employed and paid the big up front fee and now I'm being told by my new accountant I should have set up a limited ocmpany to get tax back on it. Is this right? I've been reading about and I'm getting lost on it.
Thanks in advance
Replies (4)
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Did you get anything tangible for your big up front fee ?
I'm clutching at straws here ....
You need to spell out what you bought for the fee. If the fee covered more than one thing you need to say how much you paid for each thing.
It may be that there is tax relief for the cost of some of the things you bought.
RM
Training costs are the usual problem area with upfront franchise fees. If the training fees are for employees or directors, then tax allowable. So for a Ltd Co tax allowable. For a sole trader or partnership where the training fees relate to the proprietor or a partner HMRC take the view that some "intangible" cost is created that warrants no tax relief.