Has anyone had a look at the optimal profit levels when goodwill will be worth obtaining on incorporation for a single owner. Even with a deduction say of 25% for personal use.
I have a client who has just approached me to incorporate with annual net profits of £60,000. So if a business has a low level of tangible assets but a high level of contracts, repeat business, high brand awareness, employees who generate the sales then this is the type of business that will suffer the most.
How would a value of say £50k for goodwill be entered in the books. Does anyone know how we code this if not to DLA.
I think I need to go and do my sums!