Online self assesment

coinseller · Nov 7, 2012

Hi everyone,

I`m in need of some advice.
I`ve started an ebay business in September 2011 and I`m currently trying to complete my 1st self assesment. It supposed to be fast & easy...Well, it`s not!
First I would like to ask where to include expenses such as: desktop lamp £10, chair £10, coin reference books £20-40 each. Should I treat them as day to day cost of business or rather as assets and put them to Annual Investment Allowance?

Secondly, what about things like computer, printer, camera, desk, scanner which I`ve already owned. Should I simply add up value, take off non business proportion? But which allowance window it goes to?

Thank you in advance for any help.
JA

faradaykeynes · Nov 7, 2012

not so material amount therefore sundry expense for desktop lamp £10, chair £10, coin reference books £20-40 each.

computer, printer, camera, desk, scanner which you already owned would be capital for business and items itself will be classified as FF&E

coinseller · Nov 7, 2012

faradaykeynes said:
computer, printer, camera, desk, scanner which you already owned would be capital for business and items itself will be classified as FF&E

So where I can put the figure on my online self assessment?

faradaykeynes · Nov 7, 2012

have a look at this guide http://www.hmrc.gov.uk/helpsheets/2011/hs252.pdf

coinseller · Nov 7, 2012

Can the value of assets introduced to business ( computer, camera etc.) be claimed only through Writing Down Allowance?

faradaykeynes · Nov 7, 2012

business assets get capital allowances for tax purposes, depreciation is not allowable expense

coinseller · Nov 7, 2012

faradaykeynes said:
business assets get capital allowances for tax purposes, depreciation is not allowable expense

Thank you,
It`s all a bit confusing. Could you please tell me what is a way to claim it?

Scalloway · Nov 7, 2012

coinseller said:
Can the value of assets introduced to business ( computer, camera etc.) be claimed only through Writing Down Allowance?

It depends on their value. If the value when they were introduced to the business was less than £200 I would just include them as running costs.

If the value was more substatntial you can only claim 20% of the cost this year as Annual Investment Allowance is only available on assets that the business purchases.

For 2012-13 you will claim 18% of the value less the 20% claimed for 2011-12. Thereafter you can claim 18% of the reducing balance each year.

coinseller · Nov 7, 2012

Scalloway said:
It depends on their value. If the value when they were introduced to the business was less than £200 I would just include them as running costs.

Thank you for reply,

Total value would be about £500. Does it mean that I should put £100 in a box for capital allowance?

Scalloway · Nov 7, 2012

Yes that will be ok.

coinseller · Nov 7, 2012

Scalloway said:
Yes that will be ok.

Thank you. I`m getting somewhere eventually

. I`m presuming that I should make a note about remaining 400 for my records, and as you said take off 18% next year?

Scalloway · Nov 7, 2012

Yes again that is correct.

coinseller · Nov 7, 2012

Great. I have one more question. I have some stock left that I purchased during 2011-2012 tax year. Paid total of around 12300, sold 8000 and got 4300 left. I`ve done stock take at the end of tax year but there seems to be no box on online SA to put the figure. Is that ok or I`ve missed it?

Scalloway · Nov 7, 2012

The stock in hand at the end of the year should be deducted from the cost of goods sold. Remember to add it back next year.

coinseller · Nov 7, 2012

Scalloway said:
The stock in hand at the end of the year should be deducted from the cost of goods sold. Remember to add it back next year.

I don`t understand that bit I`m afraid :|. Goods (stock) sold 8000 minus stock in hand 4300? or you mean turnover (total sales)?

Scalloway · Nov 7, 2012

Correction. I meant deduct it from your purchases to get cost of goods sold. Your cost of goods sold is 8000. The only other place for stock at the year end would be would be on your balance sheet if you had one.

coinseller · Nov 7, 2012

Scalloway said:
Correction. I meant deduct it from your purchases to get cost of goods sold. Your cost of goods sold is 8000. The only other place for stock at the year end would be would be on your balance sheet if you had one.

Thank you, that`s make sense now.
Unfortunatelly I do not have balance sheet. Would you recommend that I should have one? Or I can do without it? My turnover last tax year was 14500. This year will probably be 25000.

Scalloway · Nov 7, 2012

For your size of business I wouldn't bother.

coinseller · Nov 7, 2012

Scalloway said:
For your size of business I wouldn't bother.

thank you. that`s great :redface:.

one more thing is `goods for own use`. I kept 1 coin for myself bought for £70. I decided to keep it because there is no prospect of selling it with profit & it`s a nice item. It`s market value is at best 85-90. Which value should i put in box? Market value or profit it fetches (£15)? Or easier would be to add £85 to turnover and £70 to `cost of goods for sale`

Scalloway · Nov 7, 2012

I would take it out at cost price.

coinseller · Nov 7, 2012

Thank you Scalloway for all your help.

Questions keep coming to my head

...
It`s about utility bills... For my broadband and line rental I`ve been receiving invoices at the beginning of the month, last one on 7.04.2012. It`s for the period 1.03.2012 to 1.04.2012. Payment by direct debit on 30.04.2012.
I wonder if it should be included in my 2011-2012 tax return or 2012-2013?

Which date should I consider for tax purposes? My accounting date is 31.03.

faradaykeynes · Nov 7, 2012

I suggest use one figure under work from home instead of putting all your home bills

coinseller · Nov 7, 2012

faradaykeynes said:
I suggest use one figure under work from home instead of putting all your home bills

I`m thinking about claiming weekly £3 allowance for use of home as an office & separately claim for broadband/phone line as I didn`t have to pay any other utility bills. I hope that`s allowed?

faradaykeynes · Nov 7, 2012

£4 per week for work from home, if broadband/phone line are exclusively for business then full cost of it if not then dont bother

coinseller · Nov 7, 2012

faradaykeynes said:
£4 per week for work from home, if broadband/phone line are exclusively for business then full cost of it if not then dont bother

I`m not sure but I think £4 is for 2012-2013 tax year?

coinseller · Nov 8, 2012

coinseller said:
It`s about utility bills... For my broadband and line rental I`ve been receiving invoices at the beginning of the month, last one on 7.04.2012. It`s for the period 1.03.2012 to 1.04.2012. Payment by direct debit on 30.04.2012.
I wonder if it should be included in my 2011-2012 tax return or 2012-2013?

Which date should I consider for tax purposes? My accounting date is 31.03.

Hi everyone,

Coming back to question above, what would you suggest?

faradaykeynes · Nov 8, 2012

there is no hard and fast rule on work from home figure, it varies from business to business depending whats involved

Scalloway · Nov 8, 2012

HMRC have some examples of what is acceptable for working from home here

http://www.hmrc.gov.uk/manuals/bimmanual/bim47825.htm

coinseller · Nov 8, 2012

Thanks guys,

But it`s not what I`m asking for... As I said i`m accepting £3 that HMRC allows. I`m asking about which date for broadband bill is important for me:
is it invoice date (7.04.2012)? actual date that payment has been made (30.04.2012)? or is it the period for which services have been provided (1.03-1.04.2012)? It`s important because I`m not sure in which self assessment I shoud include this one 2011-2012 or 2012-2013?

Scalloway · Nov 8, 2012

You should include the propoprtion of the cost that relates to the period up to 31 March, regardless of when the payment was made.

coinseller · Nov 8, 2012

Thank you very much

Best Regards
JA

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