A limited company has bought some Wimbledon Debentures on the open market. and thus they cost more than their nominal value. These last for five years at the end of which the company will be entitled to buy debentures for the next five year at the nominal value.
If at some stage they do not want to continue to hold them they will be able to sell them on the open market.
VAT was charged on the purchase (I am not quite sure why) and it has been reclaimed. Is this correct?
The debentures will be written off over their remaining life. Presumably this is not allowable. And presumably when (if) the debentures are sold the base cost will be the nominal cost of those debentures that are sold rather than the original cost of the original debentures purchased.
The debentures entitle the company to a number of seats at the championship matches. These are used by the directors and staff and are given to customers etc (thus they are an entertaining cost).
What amounts should be put on the directors and staff P11Ds?
Any thoughts and experiences will be welcome!
- Declined for business bank account 239 5
- Help with Mortgage Application? 479 7
- planning to be self employed bookkeeper what do i need to do before i start? 176 3
- Any Scottish members out there? 7,622 283
- Disclosure of pending convertible loan notes? 212 10
- Standard 'email' template system 880 14
- New Client in dispute with old accountant 460 9
- Shutting down a company with creditors 1,029 14
- How to complete annual VAT return online? 216 4
- Irish VAT Deferred payment 95 1
- Circular shareholding 233 6
- Starting as sole trader from abroad 190 6
- business card address 305 8
- VAT relief eligibilty for charity buying minibus 213 2
- Loan to a related company 105 1
- Artificially reducing profits by bonus accrual 661 26
- Repairs after a rental business ends 333 10
- Can anyone recommend a good document scanner? 272 8
- property rental income split 131 1
- Expenses of overseas employment 137 2
- Raiders of the Lost Tax File 1,114
- Chartered Accountant in County Down N.Ireland 367
- IPP (International Pension Plan) income 300
- National Insurance 269
- valuation of intangible asset FRS10 and FRS20 239
- Payments on account coded out?? 229
- Cass 5 FCA Client Money Software recomendation 221
- Non Resident 187
- Unnecessary S9A Enquiries 182
- Franchise income and costs 177