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bigduckontax
bigduckontax, Accountant
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I am both employed and self-employed in the UK, conducting 2

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I am both employed and self-employed in the UK, conducting 2 separate and different types of work. I recently had a chance to buy back for nominal £1 several registered trademarks and domains from the company I founded and sold several years ago. I have no current plans for the marks/domains but those are in my personal name and will be used for my self-employment activity. There were some costs incurred for re-verifying validity of marks and re-registering them to my name, plus legal fees for re-assignment back to me. Would these be allowable business expenses for self-employment or are these costs entirely for CG consideration? As I also have employment income and paying sufficient income tax - can these costs be used in respect of my self-employment against employment income tax liability?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Yes, they are allowable. HMRC BIM445960 advise: 'Expenses incurred in obtaining the registration of a design or a trade mark for the purposes of the trade are allowable deductions. Costs of obtaining the extension of the period of a design right or the renewal of registration of a trade mark for the purposes of the trade are also allowable.' For income tax purposes your employment and self employment income are aggregated to determine your Income Tax (IT) liability. If, in one tax year, you make a loss on your self employment then this can be sat against employment income in the same year or carried forward. What you must be careful to do is not to waste your personal allowance (PA) when doing this, ideally just use enough of your losses to bring your income down to the PA level. Unfortunately you are not allowed to do this as HS227 advise that you must use all your loss or carry it forward. Needless to say there may be a juggle needed here to try not to waste too much PA. I do hope that you find my reply of assistance.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your excellent support.

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