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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7312
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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When I pay deferred income to the seller (I bought his

Customer Question

When I pay deferred income to the seller (I bought his client base) can I set this off against my profits?
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: no
Submitted: 9 days ago.
Category: Tax
Expert:  taxadvisor.uk replied 9 days ago.

Hello and welcome to JustAnswer. I am here to help you.

Please advise what has given rise to deferred income entry.
Many thanks

Customer: replied 9 days ago.
I am a financial advisor and I bought a client base from a retiring IFA
Expert:  taxadvisor.uk replied 9 days ago.

Thank you for your reply.

If this payment is not deemed goodwill and you had agreed to make a one off fee payment against recurring fee then you could expense it against profits.

If you have made a payment that is goodwill then it is a balance sheet entry and not chargeable as an expenses against profits.

My aim is to give you a professional service. I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Expert:  taxadvisor.uk replied 5 days ago.

Hi there

Just checking to see if you need more clarification/information or have I answered your question.

Many thanks