Recent content by zorillo

  1. Z

    Should foreign sales tax increase turnover?

    Great, thanks. I thought that would probably be the most sensible option.
  2. Z

    Should foreign sales tax increase turnover?

    Hi. I'm just doing our 1718 accounts and have come across something that I'm not sure how best to account for. We sell on Etsy and at the start of this year they started collecting state sales tax for Washington and Pennsylvania. This tax is automatically calculated, added to the price that the...
  3. Z

    Partnership Tax Return - Annualised Turnover & Detailed Expenses

    Hmmm, yeah, although there's no specific category for selling costs. I probably should've also been clear that those aren't the only options. 'Cost of sales' and 'Other direct costs' are the only two categories before the gross profit calculation box so I'm guessing those are meant for variable...
  4. Z

    Partnership Tax Return - Annualised Turnover & Detailed Expenses

    Thanks for your reply, I thought I might be. My problem is knowing for definite what the expenses should be categorised as, having never done it before. I've read the HMRC guidance and it hasn't made it much clearer. For context we make and then sell jewellery online. Am I correct in...
  5. Z

    Partnership Tax Return - Annualised Turnover & Detailed Expenses

    Hi. I'm just filling out a SA800 Partnership Tax Return for 16/17 using commercial software and have come across something unexpected. The Partnership was formed 14/11/16 and the software is telling me that the annualised turnover for 16/17 (presumably calculated from the actual turnover...
  6. Z

    Tax Returns when Sole Trader turned into Partnership

    Great, thanks again :)
  7. Z

    Tax Returns when Sole Trader turned into Partnership

    Hi. My partner and I run a Partnership together which was formed mid-16/17 on 14th November. The business existing before the Partnership and my partner ran it as a Sole Trader. The business has maintained the same accounting method (cash basis) throughout. Am I correct in thinking that we...
  8. Z

    Cash Basis - Customer and Supplier Refunds

    Perfect, thanks again!
  9. Z

    Cash Basis - Customer and Supplier Refunds

    Hi. I've found some other threads regarding accounting for refunds but just wanted to be sure I'm interpreting them correctly. Is the following correct? 1. If I pay a refund to a customer I should record this as a negative income entry, reducing my turnover by the amount refunded, rather than...
  10. Z

    Accounting for online marketplace fees when using Cash Basis

    Yeah, I thought that might be an issue. However if it's open to interpretation then I guess for now I'll stick with recording the income as being received when it enters our bank account. My reasoning being that the Etsy account balance isn't cash because we can't actually purchase anything with...
  11. Z

    Accounting for online marketplace fees when using Cash Basis

    Thanks for your response, though I don't understand why an adjustment like you describe is necessary if I'm using cash basis? My understanding is that when using cash basis I should just be recording income when we actually receive it not when it's earned. So even if say a customer purchases an...
  12. Z

    Accounting for online marketplace fees when using Cash Basis

    Thanks, that's what I assumed would be the case and for that very reason (VAT registration) as we'd be artificially lowering our turnover otherwise. So does rolling up the sales and fees separately and only accounting for them on the day we actually receive the balance payments into our bank...
  13. Z

    Accounting for online marketplace fees when using Cash Basis

    Hi. I'm in a Partnership and we sell on online marketplaces and use cash basis accounting. I was just looking for an opinion on whether the way I am accounting for income from these sites is acceptable. So, for example, probably the most complicated marketplace is Etsy. When someone buys...
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