- Original Poster
- #1
Soletrader here, ecommerce, turnover under £50K and not vat registered.
I just need a little guidance to ensure I am keeping my records correctly.
What is classed as stock expense regarding end of year tax return. Can delivery cost, import & vat cost and bank fees be put in expense catergories similar to stationery etc for the tax year they are paid for instead of spreading these costs across the stock?
ie I could buy 100 items at £5 each but including del, import, vat etc, the true total cost would be more like £700. Now I could spread this across the stock making the cost per item £7 each and when I sell for £15 the gross profit is £8.00, but if it does not sell well and I only sell 5 items in one tax year I still have £190 of expense tied up in stock which could have been deducted in the tax year I purchased the items. I do hope this makes sense.
I just need a little guidance to ensure I am keeping my records correctly.
What is classed as stock expense regarding end of year tax return. Can delivery cost, import & vat cost and bank fees be put in expense catergories similar to stationery etc for the tax year they are paid for instead of spreading these costs across the stock?
ie I could buy 100 items at £5 each but including del, import, vat etc, the true total cost would be more like £700. Now I could spread this across the stock making the cost per item £7 each and when I sell for £15 the gross profit is £8.00, but if it does not sell well and I only sell 5 items in one tax year I still have £190 of expense tied up in stock which could have been deducted in the tax year I purchased the items. I do hope this makes sense.
