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Are Accountancy Fees Tax Deductible

Client also expecting completion of additional tax return

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Hello

Client came to recently to file the partnership Accounts year end date 30th September 2019

Business started September 2018.     We have prepared the 30th September 2019 partnership accounts and Partnership 2018/19 Tax Return which I know is late.

The partnership was supposed to be a property business and was going to move two properties into the partnership but unfortunately income and costs is going into Partnership bank account so these income and costs were moved into the partner capital accounts.  She did try to move the property into the partnership but had some issues

The only costs of the partnership are accountancy fees. Are these costs tax deductible on the basis there was intent to trade ?

Also part of the accountancy fees she is expecting me to complete the 2019/20 tax return since the accounting period overlaps.  Unfortunately, I wasn’t clear on my engagement letter.

Thank You

Replies (7)

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By Matrix
09th Sep 2020 22:18

You haven’t had any replies yet so maybe have another go at writing the question since the facts and question seem a bit rushed. I think you can still edit questions for now...

If there was never any trade is all this necessary?

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Replying to Matrix:
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By Paul Crowley
09th Sep 2020 22:32

Same
Did not respond as did not understand the question
Deduct accounting fees from what?

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Psycho
By Wilson Philips
09th Sep 2020 22:51

This in particular makes little sense:

The partnership was supposed to be a property business and was going to move two properties into the partnership but unfortunately income and costs is going into Partnership bank account so these income and costs were moved into the partner capital accounts.

I can make sense of it by adding some words but whether that would end up with the correct position I don’t know.

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Oaklea
By Chris.Mann
09th Sep 2020 22:53

Yes, I’ve wanted to comment, for most of the day. However, I remain “ frustrated” with the phrasing.

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Replying to Chris.Mann:
Red Leader
By Red Leader
10th Sep 2020 10:44

It's all the right words, just not necessarily in the right order.
(with acknowledgement to Morecambe & Wise, c.1975)

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Replying to Red Leader:
Oaklea
By Chris.Mann
10th Sep 2020 15:18

https://twitter.com/skyarts/status/1067693577717850112?lang=en

A little light relief, to lift the current gloom!

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By taxwizard
11th Sep 2020 10:37

Apologies its a bit gobbledygook and that you were unable to read my mind :-). Was confused and stressed. Anyway solved the issue.

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