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Quick question from new Ebay business seller about already purchased stock

Hi all

Today I have become a new business seller on Ebay, and I will be selling electronics and computer components.

If I have already purchased components with the intention to sell (once received) before my business was established on Ebay, can I retrieve the tax on this stock when I complete my self-assessment tax forms despite establishing myself as a business seller today and also notifying HMRC of my intentions today also? It wasn't a major expense but I just want to know if I can add it when the time comes to do my forms. Apologies, I'm a bit clueless about tax despite lots of reading so need a little assistance. Thanks for any and all help.

Comments

  • buggritt
    buggritt Posts: 71 Forumite
    Yes you can
  • Strapped
    Strapped Posts: 8,158 Forumite
    shapala wrote: »
    Hi all

    Today I have become a new business seller on Ebay, and I will be selling electronics and computer components.

    If I have already purchased components with the intention to sell (once received) before my business was established on Ebay, can I retrieve the tax on this stock when I complete my self-assessment tax forms despite establishing myself as a business seller today and also notifying HMRC of my intentions today also? It wasn't a major expense but I just want to know if I can add it when the time comes to do my forms. Apologies, I'm a bit clueless about tax despite lots of reading so need a little assistance. Thanks for any and all help.

    Yes. Just be a little careful about the timings - you are supposed to register as self-employed with HMRC within 3 months od starting trading, so hopefully you bought the stock with the intention of reselling less than 3 months before, to be squeeky clean.
    They deem him their worst enemy who tells them the truth. -- Plato
  • buggritt
    buggritt Posts: 71 Forumite
    It makes no difference when you bought the stock. 3 months or 10 years.
    It would only be relevant if you were VAT registered and bought it before the rate changed.
  • shapala
    shapala Posts: 650 Forumite
    Part of the Furniture 100 Posts Name Dropper
    Ok, many thanks guys. I only bought the stock last week so with what you have both mentioned it should be fine. Thanks again.
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