How do pre-order sales work within the tax year?

[Jack Robinson]

Sorry if this is a dumb question, I'm new to selling. I recently sold some stuff via preorder on ebay. This was done at the start of April before the current tax year began. However I didn't pay for them until today due to some issues with my wholesaler.

Do I deduct these costs for the current tax year when they were actually bought (this is what I'm assuming) or would they be deducted for the tax year they were sold?

Any help is much appreciated!

 

[Paul Kelly ICHYB]

Are you doing cash or accural accounting?

Self employed or Ltd?

VAT registered or not?

 

[MyAccountantOnline]

Sorry if this is a dumb question, I'm new to selling. I recently sold some stuff via preorder on ebay. This was done at the start of April before the current tax year began. However I didn't pay for them until today due to some issues with my wholesaler.

Do I deduct these costs for the current tax year when they were actually bought (this is what I'm assuming) or would they be deducted for the tax year they were sold?

Any help is much appreciated!

If you are a sole trader you will (by default) use the cash basis - that means you record payments and receipts when they are made. So the sales you made will be in last years accounts, and the stock purchased will be in this tax year.

If you trade via a limited company, or are a sole trader who doesnt use the cash basis, you record income and expenses when they are invoiced and need to include in your accounts debtors (monies owing), creditors (monies owed) and stock.

 

[Jack Robinson]

If you are a sole trader you will (by default) use the cash basis - that means you record payments and receipts when they are made. So the sales you made will be in last years accounts, and the stock purchased will be in this tax year.

If you trade via a limited company, or are a sole trader who doesnt use the cash basis, you record income and expenses when they are invoiced and need to include in your accounts debtors (monies owing), creditors (monies owed) and stock.

Thank you so much

 

[Jack Robinson]

Are you doing cash or accural accounting?

Self employed or Ltd?

VAT registered or not?

Seld employed.

Not VAT registered.