Goodwill on incorporation
Client has been a sole trader (IT consultant, but not a contractor) for just over a year.
He set up a ltd co 6mths ago and hasn't used it, but now wants to.
He has 3 customers so far, (two knew him personally before he went self-employed and recommended him to the other one) and a turnover of £30k.
I don't think there is any scope for goodwill on incorporation because it's all personal to him, but am I being over-cautious?
(The client has been speaking to the "man in the pub" whose goodwill was naturally into the £thousands then [edit: "when"] they did it.)
Thanks for any helpful opinions.
- SATR - ommission of capital gains 81 1
- Recourse to Accountant for incorrect accounts 2,266 19
- Scanners 173 4
- Overdrawn Directors Loan Account 88 1
- ethical- to continue to act or not? 163 5
- Solar panels - VAT and Capital allowances 234 3
- Recharge for private use of a company car 404 9
- Payment plans for clients 125 2
- General rule: Evidence that the customer is in business 231 1
- Do most of you still use MS Office? 246 7
- Are any of you agents for doctors? 391 2
- Should I move back home away from my office? 449 9
- P60 or payslips? 98 1
- Property income in different capacities 109 1
- IHT dilemma 1,384 21
- Warning for freeagent accountants using payroll import 194 1
- IT advisory questions? 180 5
- Entrepreneurs Relief 798 44
- Has anyone else come across VAT account suspensions? 150 1
- Ceasing in membership of ATT 531 7
- Auto enrolment excuses 1,161
- Feedback on accounts production software for IFRS 799
- Add T&Cs to Sales Order in Sage 489
- Digita Hosted Software 321
- Credit where credit's due....... 275
- Director phone costs 237
- Buying goods in US and selling them to company in US 227
- What to say to Tom, Dick and Harry... 204
- Flat rate VAT- other income calculation 158
- Double taxation relief - same income, different individual 140