Self Assessment & stock/materials question

[Chris425]

Hi,
I found valuable advice here when I had a little problem earlier in the year
that helped sort it out (thanks) and would like to ask your advice again.

I was wondering if anyone could help with a question or 2

A bit of background
I'm getting ready to fill in my first self assessment tax return
I'm a sole trader in business since April '05
I've earnt less than the 15,000 threshhold allowing simplified filling
in of the self employment pages of the tax form.
I have ready my Sales Ledger, Purchase Ledger, Cashbook
plus all hard copies and statements and know my
income & expenditure totals.

I buy craft card, craft embellishments, ribbons and other such stuff
to make up craft kits that I sell and that's where my question comes
from. I have purchased more materials to produce the kits than I have
used so have lots left over at the end of the 12 month accounting period. The question I have is; do I have to record the value and what materials I have left at that time and do i have to record it on my tax return or does it have to be reflected in my income or expenses amount and if so, where/how.

Question 2 (Sorry this one may be a stupid one)
My Income - Expenses = a loss
Do I get any money back from the IR or whatever else.

Sorry about the long post, don't mean to bore your pant's off,
but I've tried calling my local tax office several times and
was transferred to their technical advisors who are always unavailable.

Would greatly appreciate any info you can provide.

Thanks.

 

[Joyous]

Your closing stock will be part of the calculation needed to put a figure in box 3.25.

Total up all that you’ve spent on materials during the year, deduct the value of the stock that you have left over and this will give you your cost of sales. Add up all your other business expenses, add it to your cost of sales figure and put the total in box 3.25.

If this is a new business (trading less than 4 years) and you’ve made a loss it can be offset against income from earlier years and you can claim a rebate.

Regards

Joy