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.

 

Comments
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I would tend to agree that

eastangliantaxadvisor |
eastangliantaxadvisor's picture

Most of it is profit

Viv100 |

Agree

Paul Scholes |
Paul Scholes's picture

Are there any ongoing maintenance contracts?

zarathustra |
zarathustra's picture

No ongoing maintenance contracts

Viv100 |

@Paul

Viv100 |