Hi Folks,
I'm giving a friend a hand with accounts for 2012. He was working as a builder but has not had work for the last few years. In May last year he got a one off contract and re-registered for Income Tax.
I assume that expenses incurred in Jan-Apr are not allowable - e.g. would be commercial vehicle lease and phone? Or would these be allowable on the basis that he would have been unable to get any work without them?
Also, he had some historical debt to suppliers from the 'good years' which he has managed to pay down some of during 2012. Can these payments be set off against income for 2012 or are they not allowable if they are from prior years?
Thanks for any help with the above.
Pia Bang
I'm giving a friend a hand with accounts for 2012. He was working as a builder but has not had work for the last few years. In May last year he got a one off contract and re-registered for Income Tax.
I assume that expenses incurred in Jan-Apr are not allowable - e.g. would be commercial vehicle lease and phone? Or would these be allowable on the basis that he would have been unable to get any work without them?
Also, he had some historical debt to suppliers from the 'good years' which he has managed to pay down some of during 2012. Can these payments be set off against income for 2012 or are they not allowable if they are from prior years?
Thanks for any help with the above.
Pia Bang