Can I write off the VTC licence in my accounts?

Yes. A purchased VTC licence is an intangible fixed asset — an operating right with a documented acquisition cost — and as such it is amortised. It is one of the tax levers most often overlooked by those new to the sector: amortisation turns part of the price you paid into a tax-deductible expense, year on year.

The general framework (with the usual caveat: your adviser should confirm the specifics of your case):

• For accounting purposes, intangible assets are amortised over their useful life. Where that useful life cannot be reliably estimated — as is typically the case with an administrative authorisation with no expiry date — the general rule under the Chart of Accounts is to amortise over ten years.
• For tax purposes, under corporation tax, the deductible expense relating to the intangible asset follows its useful life; for those with a useful life that cannot be reliably estimated, the Tax Act sets a maximum annual limit of one-twentieth of the amount (5 per cent per annum). The usual practical outcome: the accounting and tax expenses do not match, resulting in adjustments — a standard procedure, but one best handled by someone familiar with it.
• Self-employed individuals on the direct assessment scheme: the amortisation of intangible assets also comes into play, in line with the personal income tax tables and rules. If you manage your own licence, do not overlook this item.

Two practical tips that are worth their weight in gold:

• Document the full depreciable value. It’s not just the price of the licence: non-recoverable taxes and necessary acquisition costs form part of the cost. The [secure closure] file (/como-funciona) takes care of this for you.
• Be consistent with a future sale. Depreciation reduces the asset’s tax value, which increases your profit when you sell — the effect is explained in what taxes do I pay when selling. This isn’t a reason not to depreciate; it’s a reason to plan.

If you’re exploiting the licence, depreciation improves your actual profit and loss account — compare it with margin and rental income in the profitability simulator. And if you’ve let it out, remember that rental income is taxed under its own rules: how rental income is taxed.