Goods taken for own use
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tro127
Posts: 39 Forumite
We run a small limited company that manufacturers and sells children's clothing. We dress our children in the clothes both for photo's and general wear to advertise the items to other parents in the area. How do we account for this? The business benefits from our children wearing the clothes so it doesn't feel like its a straight forward 'Goods for own use' situation but obviously don't want to misreport our accounts. TIA
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You should raise sales invoices and pay the company for at least the cost prices of the clothes you take out to use personally. You don't need to pay full retail price, but do need to pay at least what it costs the company.
The only ones you don't need to pay for are the ones that aren't worn in normal use, i.e. anything worn only for a photoshoot, as long as they're not personally worn afterwards.0 -
Thanks for your response. So just material costs or do we need to include time to make?0
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Thanks for your response. So just material costs or do we need to include time to make?
the cost to the company of you taking them is therefore: materials + cost of labour in making them
how you cost your labour is down to how sophisticated your accounts are0 -
Thanks 00ec250
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