Goodwill - Buying a Business and how to account for it.

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MrMarkyMark replied

4 March 2017, 16:31
Sledges market on the up again
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MarillionFan started a topic Goodwill - Buying a Business and how to account for it.

4 March 2017, 15:23
Goodwill - Buying a Business and how to account for it.

This is a tricky question for the tax and accountancy gurus.

Following on from a very old thread http://forums.contractoruk.com/accou...allowance.html and in conjunction with the fact there were changes made to Goodwill Amortization in 2015 I can't seem to find a straight answer. It's the weekend so my accountant will have to wait.

I have just seen a business which is for sale for 50k which I'm interesting in purchasing.
I believe I want to do this as an individual not as a LTD Company. I am registered as Self Employed for purposes of Retail. I am also Director of a Ltd company for contracting.

On this financial year, at the beginning of the year I was employed and so took a salary of 150k and paid PAYE. As I have gone Self Employed for the remainder of the year I have traded a little bit more on the retail side, but effectively have a 5k loss which will be offset against my 150k in April as part of Self Assessment.

What I want to know, if I go ahead and look to purchase the business for 50k, how can I account for the goodwill to reduce this years tax and subequent against any profits?
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