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Franchise fees and tax

Jan 31 2008

This is an accounting issue and whilst not being my area of expertise, I’ll give a “franchise” view. It depends what the franchise fee paid for. If it is a license fee, for intellectual property for instance, then it is not tax deductible as a business expense.

However, if it is part of a package fee that contributes towards the franchisors costs - recruitment, training and initial support - then it can be viewed as a business asset. This means it can be written down in line with individual costs of the package fee breakdown that should be provided by the franchisor. The British Franchise Association may also be able to provide you or your accountant with information on this.

Comments [1]

Comment by roz batty

Wednesday 7th May 2008

how much can i earn before paying tax and vat

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