Tax Return time looming....

Strapped

What is it that you still don't understand, OP? That's not meant to be offensive - just wondering how we can explain it more clearly. Income tax is paid on profit. To calculate profit you start with your income, and deduct all your allowable expenses. One of these is the cost of the goods sold. One of the ways to calculate the cost of goods sold is to look at your stock levels at the start and the end of the year, using [stock at start of year] + [stock purchases during the year] - [stock at end of year].

Strapped

lindseykim13 wrote: »

Unless your turnover is quite big in which case i'd assume an accountant would be needed. Then i would guesstimate if you insist on doing one.
I've never entered an opening or closing stock figure-just total in's and total outs. Never been an issue.

It may be if you are ever audited.

Strapped

Rhymsta wrote: »

Thanks for that - a year on and still lots of disagreement...

Wonder if Martin or someone from MSE could get someone from HMRC to post on here to give a definitive answer?

When he'd stopped laughing?

Rhymsta

I didn't say that it was me that didn't understand I said that after reading through this thread and the one that was linked to there were many different takes on what was needed and how to fill in a self employed tax return. The campaign to 'target eBay sellers' was certainly given enough publicity in the National Press and even in these forums. Representatives of HMRC gave guidance about deciding if you were trading (and that question still comes up time and again) so why shouldn't they give advice on how to correctly report ones trading activities? Surely a forum like this would reach exactly the right audience.

Strapped

Rhymsta wrote: »

I didn't say that it was me that didn't understand I said that after reading through this thread and the one that was linked to there were many different takes on what was needed and how to fill in a self employed tax return. The campaign to 'target eBay sellers' was certainly given enough publicity in the National Press and even in these forums. Representatives of HMRC gave guidance about deciding if you were trading (and that question still comes up time and again) so why shouldn't they give advice on how to correctly report ones trading activities? Surely a forum like this would reach exactly the right audience.

Good, so you're sorted then?