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.
- Footballers Testimonials Taxable? 820 8
- Corporation Tax Software 324 10
- How do I save face? 1,955 14
- New Practice - Accounting Software 3,558 89
- HMRC Summons for £14k 237 2
- BrightPay 983 28
- Goodie bag 2,841 72
- US Pensions and Renunciation of Citizenship 73 1
- How many associated companies 142 2
- BIK for an electric car 97 1
- Signed accounts for a lender 400 17
- can I approach clients ? 839 11
- Regular Director bonus 280 5
- Secure document exchange 576 6
- New Agency rules - who's responsible? 129 2
- Clients have been told I'm working from home 587 9
- FreeAgent question 318 8
- Mortgage interest 108 1
- Practising options 498 6
- Self-employed or Ltd Company or seek employment 456 10
- Possible Partnership? 678
- Tax and accounting treatment on long lease granted from freehold 530
- Fuming! 474
- New Fangled Penalties 463
- Purchase of property freehold - capitalisation of costs 329
- Charity dissolution and newly merged charity 271
- Moving away from CCH software 255
- Outsource Data Entry 249
- Lenovo – Superfish & Komodia – is your PC vulnerable 249
- Do I need a US Tax Identification Number to complete W-8BEN-E? 199