Self Assessment - Stock Take and Visa Cards - Please Help

snowwhite_2

Hi, I am doing my tax return for the first year of being self employed ( not a full year ) and not sure what to do with a couple of things.

Any advice would be great thanks.

I will put some figures as a guide etc.

Bought stock for 20K (month before up and running) but still owe for 15K on visa or loans etc.

Sales £14K
New stock in £12K but again not paid in full

Not sure how to put it on form, its the stock that is getting me stuck.

I have had it in but only paid for a bit of it.

When i did a stock take at 31/03/08 I got a figure how much had gone etc but do i put down what I bought or just what I have paid for...Bearing in mind I have sold lots of items that are still on visa or owe etc.

Sorry as I am not saying it how I am trying to say it.
does anybody understand what i mean??

Tiggergirl

Ignore whether you have paid for it yet or not.

The cost of the goods you have sold is what you are after. This would be the 32k of stock you have bought, less the cost of the stock you had left over at 31/03/08.

windswept

As you've only done £14k in sales ( this was our first full years turnover in 07/08), you only need 3 figures for your SA form - turnover ( £14k ) - minus expenses, including cost of sales - equals taxable profit (or loss).
I imagine you have a loss for your 1st year ( you really should;) ) you can carry this over to offset this years' profits .

I assume you know how to calculate your cost of sales? - you only account for the stock that has actually been sold, it's irrelevant how much you've spent on stock. I work out my cost of sales monthly to keep it easy.

Just out of curiosity, why have you left it for 9 months before sorting it out?