Commentary

V7.458 Costs incurred by an agent

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.458 Costs incurred by an agent

Part V7 Tax planning | Commentary

V7.458 Costs incurred by an agent

In the course of his work, an agent will incur costs trying to arrange a deal, and it is necessary for the agent to identify the cost as relevant to one of the following three categories.

  1.  

    •     Agent's own costs – such costs are absorbed by the agent and will reduce his profit when his accounts are produced. There is no scope to recharge these costs to a client. As long as the agent's supplies are wholly taxable, he will be able to reclaim input tax on these costs subject to the normal rules.

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