tax deductible

[paul8]

Hi

I have purchased 2 domain names for use in my business are you aware if the cost of these are tax deductible and if so, under what section should I claim relief.

Any feedback much appreciated

Many Thanks

Paul

[malvolio]

Huh?? If it's wholly and exclusively for your business, it's tax deductible.
Corporation tax is a tax on profits, so if you spend money you reduce the profit and so you pay less tax. So what do you mean by "under what section should I claim relief."??

Who's your accountant anyway? These are basics...

[paul8]

Thanks for the info.

My accountant seems to think this is not tax deductible and bearing in mind the 2 domains in question were over £10,000.

Paul

[ferret]

Hi Paul8,

Tell your accountant not to be so silly. If these domains are for business use then they should be paid for out of your business account and therefore VAT on them (if charged at source) can be reclaimed or, as Malvolio stated, they are taken from your company and therefore you will not pay tax on this amount.

Please let us know who your accountant is so we can point and laugh in their direction.

[Lucifer Box]

Paul8, you must sack your accountant immediately. He/she/it is clearly dangerously clueless and will cost you serious money. Really, I cannot emphasise this enough.

If you are looking for a specialist contractor accountant who knows the ropes of our business, the usual recommendations of the board are SJD, 1st Accountancy and Nixon Williams. The first two post here fairly regularly and may make themselves known in this thread before long. All will serve you well at a fair price.

[meridian]

To be fair to his accountant, at £10k for two domains (just the domains, and no site?) it could be construed as capital expenditure. We don't know the full story of how and why these domains were purchased, without which any advice to sack his accountant may be misguided.
Paul8, get a second opinion from a qualified accountant certainly, but make sure you provide the full background for a definite answer.

[Darren@UptonAccountants]

Hello



Yep, cost of domains for business use would be classified as a business cost. At that kind of value, they could be classed as an asset as opposed to an expense of the business.

There could also be other tax planning points to do with holding the domain in your name and renting to the company, etc but speak to your accountant first.

[ASB]

To be fair to his accountant, at £10k for two domains (just the domains, and no site?) it could be construed as capital expenditure. We don't know the full story of how and why these domains were purchased, without which any advice to sack his accountant may be misguided.
Paul8, get a second opinion from a qualified accountant certainly, but make sure you provide the full background for a definite answer.

At 10k it is surely a capital item, also if it was necessary to pay 10k for them then I think it is a fair assumption they are of value in the general term. As such it is probably not even a rapidly depreciating asset. If they can't be sold on at something around this figure it does raise a question of whether the expenditure was justified at that level.

[Paddy]

Thanks for the info.

My accountant seems to think this is not tax deductible and bearing in mind the 2 domains in question were over £10,000.

Paul

Did you purchase them from an offshore company owned by yourself?

[paul8]

No did not purchase offshore.

The domains are used as individual businesses,and therefore they have not been purchased to resell.

I have a feeling they have greatly increased in value since I purchased them.

Paul