UK tax laws on domain names

[olebean]

I' still curious about the technicalities... Is it a domain sale or assignment of contract?

 

[grandin]

It is important

Given the Trade Mark Act and associated case law goes on about protecting the good will of a persons business then we need to know...we all run businesses in some shape or form

Lee

 

[olebean]

On the face of it - one LJ of Appeal trumping another one - even though they are of the same rank! What has happened next I don't know - but you have sparked my curiosity enough to try to find out...

Do keep us informed

 

[Creature]

40%

At the tax office today I asked about a £5,000 domain that I bought.

I understood that you can claim 40% capital allowance on that domain name for the first year and then 25% for the following years. You need to intend to keep that domain for at least 2 years.

Creature.

 

[olebean]

At the tax office today I asked about a £5,000 domain that I bought.

I understood that you can claim 40% capital allowance on that domain name for the first year and then 25% for the following years. You need to intend to keep that domain for at least 2 years.

Creature.

Could i ask what you told them

 

[Creature]

tax

I told them I had bought a domain name for 5k. They said that my capital allowance on the domain would be 40% for the first year so long as I intended to keep it for 2 years. Capital allowance in the following years would be 25%

 

[olebean]

I told them I had bought a domain name for 5k. They said that my capital allowance on the domain would be 40% for the first year so long as I intended to keep it for 2 years. Capital allowance in the following years would be 25%

Interesting that they suggest that you should capitalise it... Categorised as an intangible asset (goodwill)

 

[lesurf]

I told them I had bought a domain name for 5k. They said that my capital allowance on the domain would be 40% for the first year so long as I intended to keep it for 2 years. Capital allowance in the following years would be 25%

Do you have any reference for this that I can quote this to my accountant?

 

[Creature]

face2face

No record as I met the tax man face to face at the tax office today, however I am going back next week with the final figures so I can ask. The tax office run workshops on this every 2 weeks or so. I didn't buy the 5k domain to sell quickly, if that helps. I explained that I was using the domain as a marketing base for affiliate advertising and sales and multi-media type stuff. I doubt that I will ever use an accountant again. (Well I'll try not to anyway!)

 

[olebean]

No record as I met the tax man face to face at the tax office today, however I am going back next week with the final figures so I can ask. The tax office run workshops on this every 2 weeks or so. I didn't buy the 5k domain to sell quickly, if that helps. I explained that I was using the domain as a marketing base for affiliate advertising and sales and multi-media type stuff. I doubt that I will ever use an accountant again. (Well I'll try not to anyway!)

Tell me that after you have your first investigation (at least once is six years)

 

[Creature]

Tell me that after you have your first investigation (at least once is six years)

Actually I kind of got the feeling they were making notes and copying what little I took along. Probably even recording our informal chat! I did mention the rough cost of a car and a barrage of questions followed.

I think that an investigation can be backdated to look at 6 years of accounts but I don't believe that in is definite that every individual will be investigated at least every 6 years.

 

[olebean]

Actually I kind of got the feeling they were making notes and copying what little I took along. Probably even recording our informal chat! I did mention the rough cost of a car and a barrage of questions followed.

I think that an investigation can be backdated to look at 6 years of accounts but I don't believe that in is definite that every individual will be investigated at least every 6 years.

you are right... in some case it is more.. more frequent

The tax office can backdate beyond 6 years with reasonable belief

 

[Creature]

Renewals

Okay so maybe I need an accountant. Do the domain renewals come under 'Expenses' ?

 

[PredPred is verified member.]

Okay so maybe I need an accountant. Do the domain renewals come under 'Expenses' ?

Hi Creature
Of course, it's costs.
Renewals will be annually offset against profits, along with all the other costs.
Depends if self-employed or limited company what other 'benefits' you get & allowances
Pred

 

[Creature]

costs

Oh yeah............thanks. I just took the figures to the accountant. ie. I gave up!