Directors costs in setting up business
I have a client who set up a new company. He has two companies, a long running one and the new one. Before setting up the new company he undertook many site visits, which involved him taking time out of his old business, to assess the viability of his new business. He is wondering whether he can charge his time to the new business, as the days he spent assessing the viability, were days he could not work in his old business. He would charge his daily rate x days spent on sites.
If this was possible would it just go through the P&L as start up costs?
He also used the help of another individual who did not charge for his time, but in return he is obliged to use him moving forward in the business. Would this be classed as a form of barter. I recall in study days gone by that barter transactions should be accounted for...but many of these days were spent in a haze of confusion ,so I may be mistaken.
Any advice is much appreciated.
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