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Lead generation website and capital or revenue

Lead generation website and capital or revenue

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A client has a lead generation website business that he operates via a Ltd Co. It's a small concern with less than £40k T/O. There is no significant hardware and no infrastructure/specific software is in place or being developed. 

He builds the websites himself using third party website building software and then incurrs SEO and content costs going forward. Sites may or may not be successful and could be held for a few years or a few months.

These costs have historically been less than a few thousand but this years costs are nearer £10k albeit of a very similar nature.

Accounts are prepared under FRS105. 

These costs are treated as revenue expenses and fully tax deductible - agree?





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paddle steamer
01st Sep 2021 17:35

Who pays him and for what?

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Replying to DJKL:
By CWservices6064
01st Sep 2021 18:30

His company websites generate enquiries that require a call back to qualify the lead.

He is paid by the call centres based on the number of qualified leads passing through his website.

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By Tax Dragon
01st Sep 2021 18:00

That sounds perilously close to, if not actually over, 25%.

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