Tax Return help!

Aldaniti

Aldaniti

At the Start
Joined
Dec 21, 2005
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Wickford
Are there any self employed people on here that I can pick your brains? :confused:

I've given up with the HMRC who just don't seem to know what they are talking about!

Brief lowdown of problem

I sell pet supplies at shows etc, we do not have a shop,

If I bought 100 dog toys in April (2008) but only sold 50 of them over that financial year what do I write down in the "cost of goods bought for resale or goods used" box

a, Total cost of the 100 toys

or

b, cost of the 50 toys that I sold

HMRC told me a few weeks ago "b" but today have told me "a"

So now I am totally confused :mad:
 
I'm guessing, Aldaniti, but suspect that you need to input whatever the total for a) is, as the purchase probably represents company assets............with your Sales/Receipts going elsewhere in your return.

I don't really know to be perfectly honest. The cash I pay an accountant to sort out all this sheeyit is money well spent, imo!

Edit: Now I think about it, the direction given is typically obscure, as "Goods Bought for Re-Sale" and "Goods Used" are almost always likely to be two completely different totals i.e. most companies will always retain a certain level of stock which is paid for, but unsold. I'm afraid I have no idea, but given it sounds like HMRC are in the same boat, I would go with whatever figure you reckon will incurr the smallest tax liability! :)
 
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surely its (a) and the value of unsold is entered in your stocktake at year end and carried forward to next year
thats how i do it anyway
 
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