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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Self assessment tax and closing stock.
Post Info TOPIC: Self assessment tax and closing stock.
claireb


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Self assessment tax and closing stock.
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Hi

My client is running a small business making jewelry as a self employed person, selling items thru paypal only.

Can somebody tell me if I have to take off her (approx) closing stock figure - calaculating her cost of sales - for tax purposes.

Or do i just include all of her items purchased for the jewelry as 'allowable expenses' and therefore ignore any stock in hand as at her end of year date.

 

Any advice/help greatly appreciated.

Ive always used cos for limited or larger companies but Im not sure if its necessary for Self employed, for such a small closing stock figure.

 

Many thanks in advance.

 

 

 

 

 



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MarkS


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HI Clare

If for 2012/13 tax return (which assume it will be) you need to adjust for closing stock as accounts are prepared on accruals basis. 

Though going forward if the business qualifies then for 2013/14 you will be able to prepare accounts on cash basis and therefore dont need to adjust for stock,debtors, creditors, accruals and prepayments at year end.

Regards

 

Mark



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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
claireb


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thanks for your help Mark.

Claire


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Truemanbrown


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One quick question, presumably this is your client's first year of trading. If this is not the case then do you have a figure for opening stock?

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Your local accountant

 

 
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