just going by you comment here -BUT those that did not can put into the following year
Assuming a 5th April year end, or 31 March year end
is there any legislation that backs this up?
one other comment is go those people that run their accounts to a date that isn't 05/04 or 31/03 - does the grant have to go within the tax year the same as the SEISS grants?
thats interesting - as 99% of the tax returns i have seen have included this income within tax year 20/21 as this is when it was received/when they knew that they met the criteria - has any one had any HMRC enquirers regarding this yet i wonder?
what you should do is not trade for 2 years and claim it. You should then start up again and again and again each time claiming business asset disposal
your opening post in unclear you say they are issued at no cost. But they are exchanging the debt that is owed to them into preference shares - which is consideration.
with the limited info the journal will be as follows
DR 10k (assume its sat in trade creditors)
CR 10k Preference shares account
yes you will unless the value of the van and all other assets total a value of less than 6k (including vat) as the vat element would be 1k - which is the deminimus limit for HMRC not to care
i would advise readding the guidance as this is a very basic question. you can pay as much as you deem neccessary to the employee but you can only claim a maximum of 2.5k from hmrc in relation to furlough for this employee - assuming he is furloughed for the full month
i dont fully understand why the costs would be amortised. However, assuming the cost is wholly and exclusively for the benefit of the trade - which it should be the costs will be tax deductible
My answers
just going by you comment here -BUT those that did not can put into the following year
Assuming a 5th April year end, or 31 March year end
is there any legislation that backs this up?
one other comment is go those people that run their accounts to a date that isn't 05/04 or 31/03 - does the grant have to go within the tax year the same as the SEISS grants?
thats interesting - as 99% of the tax returns i have seen have included this income within tax year 20/21 as this is when it was received/when they knew that they met the criteria - has any one had any HMRC enquirers regarding this yet i wonder?
get a bounce back loan and bet it all on red. red always wins
what you should do is not trade for 2 years and claim it. You should then start up again and again and again each time claiming business asset disposal
your opening post in unclear you say they are issued at no cost. But they are exchanging the debt that is owed to them into preference shares - which is consideration.
with the limited info the journal will be as follows
DR 10k (assume its sat in trade creditors)
CR 10k Preference shares account
yes you will unless the value of the van and all other assets total a value of less than 6k (including vat) as the vat element would be 1k - which is the deminimus limit for HMRC not to care
the cost is tax deductible - call it what ever you want but its a prepaid expense - tax follows accounting treatment
i would advise readding the guidance as this is a very basic question. you can pay as much as you deem neccessary to the employee but you can only claim a maximum of 2.5k from hmrc in relation to furlough for this employee - assuming he is furloughed for the full month
i dont fully understand why the costs would be amortised. However, assuming the cost is wholly and exclusively for the benefit of the trade - which it should be the costs will be tax deductible
yes