Passion /entrepreneur drive

Sole trader allowable expences

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I am currently working on my cash sole trader antique dealer his 40th year of trading 

I have a debit suspense account item £750 from 20 years ago. His writing is terrible.  Wishing to deal with this I have just asked him what the payment represents.  He says it was a gift for his mistress.

I have cited the wholly exclusive neccessary principle regarding business expenses and said I would like to credit suspense account  £750 and debit drawings account  £750.

He has made representations to me and I recite '  Passion drive and entrepreneurial drive are inextricably linked and could you write it off to ' Passion expenses account thus reducing his profits and taxable income. "

He is in essence saying his mistress gave him the uplifting necessary to make profits. 

He looks after me exceedingly well so should I acquiesce or execute what I consider to be legal and ethical. 

I have know him and served him for 40 years.

PS The said quantum is only £750

Replies (9)

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By Ruddles
22nd Mar 2018 13:22

If you need to ask you shouldn’t be advising.

Thanks (1)
JCACE
By jcace
22nd Mar 2018 13:26

I'm sure that £750 paid to his mistress is not the only uplifting experience he has paid for over the last 40 years, but that won't make it (or any of the others) tax deductible, legal or ethical. And as an accountant with many years experience behind you, you shouldn't really need to ask this kind of question - you know what the responses will be. But then again, I suspect you enjoy what you perceive as banter.

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By mrme89
22nd Mar 2018 13:31

Why is this troll allowed to continue posting rubbish?

Thanks (4)
Replying to mrme89:
paddle steamer
By DJKL
22nd Mar 2018 13:55

Because there are no billy goats on the bridge.

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paddle steamer
By DJKL
22nd Mar 2018 13:39

I like the fact that you have served him for 40 years yet the cost in suspense is twenty years old. Why bother with it this year when for nineteen years is has been ignored?

Also your understanding re wholly and exclusively is somewhat faulty re the self employed, even after forty years, "necessarily "is not on point, even when you spell it incorrectly.

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By Briar
22nd Mar 2018 14:01

I am also currently working on a cash sole trader antique dealer - her 40th year of trading. She is also my wife.
I have a debit suspense account item £15,000 (£750 for the last 20 years). Her writing is very neat and tidy. Wishing to deal with this I have just asked her what the payment represents. She says it was a gift for her accountant/husband (me) at Christmases and our Wedding Anniversaries.
I have cited the wholly and exclusively test regarding business expenses and said I would like to credit suspense account £15,000 and debit drawings account £15,000.
She has made representations to me and I recite "Passionate drive and entrepreneurial drive are inextricably linked and could you write it off to 'Passionate Driving Expenses account' thus reducing my profits and taxable income"."
She is in essence saying her husband gave her the uplifting necessary to make profits (unknown for most cash only antique dealers!!- profits that is).
She looks after me exceedingly well so should I acquiesce or execute what I consider to be legal and ethical.
I have known and served her for 40 years.
PS The said quantum is only £15,000.

Thanks (3)
By Tim Vane
22nd Mar 2018 14:17

My own professional view on this is that while the entrepreneur in question may well be getting the very best service from his mistress, it would appear that some of his professional advisers are compulsive liars who are both delusional and exhibit extreme attention seeking behaviour.

I think it would be prudent to ensure that his accountancy costs are transferred from expenses to the DLA since including them under the heading professional fees would not give a true and fair view.

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By andy.partridge
22nd Mar 2018 14:46

That's two minutes of my life I'll never get back.

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Quack
By Constantly Confused
22nd Mar 2018 15:08

If you're going to continue pretending to be an accountant (and that isn't implying you are a bad one as others do, it is merely implying you aren't one at all and are doing this for poops and sniggers as a layman) please could you make your threads more interesting and less intentionally inflammatory. I enjoy a break from the drudgery of the real questions on here, but the alternative has to be entertaining to be worth reading. I'm not getting that from you.

Please try harder and I will become a fan.

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