Into which Salon bank account are the custmer payments made? If the salon only has one trading account and uses that, the demarcation becomes blurred. I would advocate the salon using a client account for customer payments, which can then be disbursed 55/45 as necessary.
What if the pool car is taken home by an employee who is on callout for his employer? I've had clients in the past in this situation and demonstrated that "no private use" was written into the company's terms of employment.
Thanks! I did that before, but was only offered Notepads. Following your response, done it again and Lo and Behold! - Excel is now an option! Don't we just LOVE Microsoft software, always keeping us on our toes!
(Sincerely, thanks. Having done that route already, probably wouldn't have tried it again)
I pass software charges on directly to my clients. I have several tax/accounts packages which are priced individually, and from my client lists I can count which and how many clients require which modules. From this I can calculate a "per client" cost for each module.
When I bill, I charge time costs, which are discountable for prompt payment, and add the "software charges" as a non-discountable disbursement. These are currently £20 per module per client.
I see this as a fair way to allocate those costs to those specific clients who are enjoying the benefit of each specific software module.
On the (rare) occasion these charges have been queried, I've only had to mention the four-figure sums I pay for this software to placate my client.
I'm only a small practice, but this system works well for me.
Fully agree with Paul. I take the same stance with my clients - "The more preparation you do, the cheaper my fee will be . . .". Here in Yorkshire, that works a treat!
As a general rule of thumb, I would never accept such HMRC advice "verbally", but ask for confirmation of same in writing. Hard evidence beats hearsay any day!
With such a high balloon payment at the end of the agreement, is this acually Lease-Purchase? As OP is unsure of treatment, maybe also unsure of exact nature of the agreement?
My answers
Into which Salon bank account are the custmer payments made? If the salon only has one trading account and uses that, the demarcation becomes blurred. I would advocate the salon using a client account for customer payments, which can then be disbursed 55/45 as necessary.
What if the pool car is taken home by an employee who is on callout for his employer? I've had clients in the past in this situation and demonstrated that "no private use" was written into the company's terms of employment.
Thanks! I did that before, but was only offered Notepads. Following your response, done it again and Lo and Behold! - Excel is now an option! Don't we just LOVE Microsoft software, always keeping us on our toes!
(Sincerely, thanks. Having done that route already, probably wouldn't have tried it again)
I pass software charges on directly to my clients. I have several tax/accounts packages which are priced individually, and from my client lists I can count which and how many clients require which modules. From this I can calculate a "per client" cost for each module.
When I bill, I charge time costs, which are discountable for prompt payment, and add the "software charges" as a non-discountable disbursement. These are currently £20 per module per client.
I see this as a fair way to allocate those costs to those specific clients who are enjoying the benefit of each specific software module.
On the (rare) occasion these charges have been queried, I've only had to mention the four-figure sums I pay for this software to placate my client.
I'm only a small practice, but this system works well for me.
An accident waiting to happen. Don't walk away, run!
Fully agree with Paul. I take the same stance with my clients - "The more preparation you do, the cheaper my fee will be . . .". Here in Yorkshire, that works a treat!
Play nicely now, children!
As a general rule of thumb, I would never accept such HMRC advice "verbally", but ask for confirmation of same in writing. Hard evidence beats hearsay any day!
With such a high balloon payment at the end of the agreement, is this acually Lease-Purchase? As OP is unsure of treatment, maybe also unsure of exact nature of the agreement?
Edited to add: OP refers to "purchase" of van
Has anyone else noticed that the further from "pure" accounting an Any Answers question is, the more protracted the series of responses?