i need help

[kprnutz]

i am small sole trader this is my second year of trading
i do it mainly as a hobby but obviously i buy new items so therefore abide by the law

in filling out my tax return i thought i would take the short route which means just add all sales etc. together and all fees together seemed simple , i submitted my form as i do not get bank interest etc. due to low volume of sales
now i have just realised i did not put my stock left over on the form from what was left from before last years tax return can i amend this and where on self assessment should i put it , also could it be a rough idea as i buy and sell a lot of cigarette and other cards from auctions plus new items , i can sort the new items out easily and give the exact amount i paid but for cards it is impossible unless i sit here counting for a few months .

any help please i am at my wits end trying to sort this out

[Merlion ABS]

I think what your getting at is that you didnt adjust your purchases cost to reflect your opening and closing stock figures for the year.

First off, do you know the value of this stock at the beginning to the year and at the end of the year? Is there much difference?

Basically how it should work is as follows (example figures)

Opening Stock £1000
Purchases in year £5000
Closing Stock (£900)

Cost in profit & loss £5100

To be honest depending on the value and the level of turnover, I wouldnt be too bothered about amending the Tax Return usless it will make significant changes to any tax you need to pay.

You can estimate the figure but you will need to give your best guestimate that appears reasonable.

If i have misunderstood your question then I apologise and please provide more information.

Cheers

[kprnutz]

hi
i seem to be getting many diverse comments about how i should class stock , and how i should account for it ,
but i already account for stock purchases via the expenses box on self assessment form and has my stock rolls over to next year obviously that stock will be my profits (hopefully) so my stock has been added to my return and some will be taken off via sales etc.

i am a really small part time seller i have a fair estimate to value of stock
but hmrc say i do not need do anything as i have told them i have purchased items and added via the expenses box and i just need to keep receipts as i will have (rolling stock) each year

[elainec100@cheapaccounting]

Read here for how to work out the cost of sales figures on the self assessment box:

http://www.franklyaccounts.co.uk/glossarycosts.php

Cost of Sales

The cost of the goods you have acquired to make your sales. For example


Subcontractors in the construction industry should include here the cost of any materials supplied
Taxi drivers, minicab drivers etc. and those in the road haulage industry should enter fuel costs in this box rather than elsewhere unless they are claiming mileage rate
Hairdressers should enter shampoo and hair product costs here

At the end of the year you will need to make an adjustment for the stock you have left
So the value for cost of sales will be:


Value of opening stock brought forward from last year
Plus Purchases made during the year
Less value of closing stock at the end of the year

This is reflected in the notes to the self assessment here:

Cost of goods bought for re-sale, cost of raw materials used; direct
costs of producing goods sold; adjustments for opening and closing
stock and work in progress; commissions payable; discounts given.
Taxi and minicab drivers and those in the road haulage industry should
include fuel costs here, rather than box 19.

see SEFN8

So that is the answer!