Pre trading expenses - practicing certificate

Pre trading expenses - practicing certificate

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Hi all,
I would very much appreciate some opinions on the treatment of the first practicing certificate.

In terms on context, we are a newly formed (very small) accounting practice, operating as a partnership, (2 partners). We are both ACA qualified with the required minimum 2 years post qualification experience, ( the training costs and ICAEW joining fees are not the subject of this question).

We have both researched and read a number of sources, (HMRC, Legal cases, blogs etc), but have been unable to agree on the correct treatment.

The question is whether the obtaining of the first practicing certificate 'brings into existence an enduring benefit?'

It could be argued both 'yes' and 'no' which is where we are at.

It is our understanding that we could practice without a certificate, but to do so we would need to terminate our ICAEW and this is creating the healthy debate we are currently having.

Many thanks in advance for your thoughts/ opinions.

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By User deleted
02nd Jun 2015 08:53

Practising certificate cost is an annual affair (unless there is an initial admission fee), and therefore, applying s.61 CTA/09 or s.57 ITTOIA/05 the cost will be allowable.

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