Accounting questions from a new sole trader

ste1200

Hi, for a few years now, I have been buying and trading records online. It has got to the point where I have so many I need to start selling, so I have created a new website.

As I need to sell the records from myself to my company, I'm unsure of how to do this or what to put on the invoice, as I can't actually pay myself for them until I make some some money selling them on the website. To be honest I'm not sure what records I need to keep for the taxman.

I don't think its too complicated, but as I've never done this, I'm not entirely sure what I will need for self assessment. I think I need to keep a record of all my sales orders, my paypal receipts and my postage receipts, but thats all I know.

Can anyone help please ?

Thanks
Steve

WLM21

Try this site for general business advice (Business Link)

http://www.businesslink.gov.uk/bdotg/action/home

It should answer some of your questions. They even have free business advice interviews / meetings.

Good luck in your venture

geordie_joe

ste1200 wrote: »

Hi, for a few years now, I have been buying and trading records online. It has got to the point where I have so many I need to start selling, so I have created a new website

You can't advertise your web site in here. If I were you I would remove the link to it, before the admin do it for you.

crass

Hi ste1200.

First of all you need to decide if you are a sole trader or a company!

Have you registered a company with companies house?

If not you are a sole trader, and there is no difference between yourself and the business, so no need to sell stock to the business.

ste1200

crass wrote: »

Hi ste1200.

First of all you need to decide if you are a sole trader or a company!

Have you registered a company with companies house?

If not you are a sole trader, and there is no difference between yourself and the business, so no need to sell stock to the business.

I have registered as a sole trader, but I do think I would need to sell the stock to the business, as at the moment they are my personal posessions ! When I registered as a sole trader they said they would send me some info on a half day accounting course so hopefully I will get the info from there.

runninglea

write a cheque out of your business account and put it in your personal account.

This is your starting point as a sole trader, make a list of all the items you are buying.

I would itemise the list with the cost next to each item. Easier then to see which items are making a profit.

LianneCarlaS

For accounting purposes a business is a seperate entity to it's owner (although only limited companies are legal entities) For this reason you need to
-add capital to the business account (business owes you £x)
-The business buys the stock from you and you provide a reciept
-The amount of capital the business has reduces as it's bought stock but the business still owes you £x
- The business makes sales. Part of the revenue is re-invested in further stock -The rest funds other outgoings and finally pays you back the capital introduced
The business no longer owes you

Let me know if there is any terminology you are unsure of or would like any further explanation