Apologies for the brevity. I should clarify they they are not a client but have asked if I could help so I am not yet subscribed to doing anything. I have been given an outline and hope to meet when they are back from travels next week. Nothing signed as yet. And maybe I cannot help at all.
They previously have been on a 6-month course run by a well-known institution, written a children's book, paid for editors to give feedback on the draft.
At the time they paid for the course (£4k I think) they took advice and were told - like many accountancy websites also advise (and I am not saying they are correct) -that they could roll these forward up to seven years and charge these to a company when they had a book deal and were making money.
They may decide to self-publish, but given that's how E L James started, I would not criticise that decision.
But I have confirmed that there have been expenses this year so the company isn't dormant. I will find out more when we meet.
There is this thread that asked a similar question and a response confirmed it is possible to charge pre-incorporation expenses in line with s61 CTA, although the case law isn't given.
I have looked at this information and tried to work out when a writer is actually trading. When they write? When they have completed the first draft? Tenth? Or when they have found an agent. Or publisher.
Hence the question, because when HMRC says "carrying on a business activity such as a trade or professional activity" I am left scratching my head!
I couldn't find anything definitive. So I thought best to ask about dormancy for CT because I suspect that it's not dormant for Cos House purposes.
My answers
Thanks. Yes it’s going to take a fair bit of work.
How does one ever make any money when you spend so much time on correcting errors on something that should have been simple??!
Draining and quite patronising - he knew he was being unhelpful.
Thanks again.
Thanks Andy.
Good point re the previous accountant.
I shall have to get onto reconstructing that register too. You are quite right about explanations should there be an enquiry. Thanks.
Thanks John
I have seen the statements - it's a business loan
I wanted to ensure the assets he had purchased with the loan had been capitalised.
Thank you for this chicken farmer - I appreciate your help.
Yes it seems a lot of money. I shall ask for more details of the course but I can see that it is likely to qualify as capital.
And yes I agree that incorporation would have been better when there was certainty of income.
Thank you
Thank you. I appreciate you are trying to help.
Apologies for the brevity. I should clarify they they are not a client but have asked if I could help so I am not yet subscribed to doing anything. I have been given an outline and hope to meet when they are back from travels next week. Nothing signed as yet. And maybe I cannot help at all.
They previously have been on a 6-month course run by a well-known institution, written a children's book, paid for editors to give feedback on the draft.
At the time they paid for the course (£4k I think) they took advice and were told - like many accountancy websites also advise (and I am not saying they are correct) -that they could roll these forward up to seven years and charge these to a company when they had a book deal and were making money.
They may decide to self-publish, but given that's how E L James started, I would not criticise that decision.
But I have confirmed that there have been expenses this year so the company isn't dormant. I will find out more when we meet.
There is this thread that asked a similar question and a response confirmed it is possible to charge pre-incorporation expenses in line with s61 CTA, although the case law isn't given.
https://www.accountingweb.co.uk/any-answers/pre-incorporation-expenditure-0
Ok just checked s61 CTA and you're right. Thanks.
Thanks Justin
I have looked at this information and tried to work out when a writer is actually trading. When they write? When they have completed the first draft? Tenth? Or when they have found an agent. Or publisher.
Hence the question, because when HMRC says "carrying on a business activity such as a trade or professional activity" I am left scratching my head!
I couldn't find anything definitive. So I thought best to ask about dormancy for CT because I suspect that it's not dormant for Cos House purposes.