Self Assesment with Sole Trader

lavster

Hi im looking for some advice.
Im a full time worker with an amazon / ebay business that I setup in November. Im going to do my first tax return this year. What im wondering is
a) do the earning from the business get added onto my paye salary as im a sole trader.
b) I've currently (according to my books) spent £2,800 on stock and expenses and made £1,700 worth of sales. So obviously I wont be eligible for any tax this year i guess or will i? Or will I actually be entitled to a refund due to my paye?

any advice would be greatly appreciated.

chrismac1

Your first tax return will include PAYE work from your 2012-13 P45, plus self-employment sales and expenses from the first day of trading (including any pre-trading expenses) to 5 April 2013 or 31 March 2013 (HMRC accepts 31 March accounts as if they were 5 April.)

If you make a taxable self-employment loss, you can opt for sideways relief against other income in the same tax year. You should aim to submit the return by 30 April 2013, refund will be paid to your bank account - if you put the details on the return - within 4 weeks of submission.

Pennywise

lavster wrote: »

I've currently (according to my books) spent £2,800 on stock and expenses and made £1,700 worth of sales. So obviously I wont be eligible for any tax this year i guess or will i?

If you make a profit, you'll have tax to pay.

You need to adjust your stock purchases by the amount of stock unsold at the year end. So if you've spent £2.8k and still have £2k of it in stock, you've made a profit of £900, i.e. £1.7k less £800

lavster

Pennywise wrote: »

If you make a profit, you'll have tax to pay.

You need to adjust your stock purchases by the amount of stock unsold at the year end. So if you've spent £2.8k and still have £2k of it in stock, you've made a profit of £900, i.e. £1.7k less £800

Thank you for your response? but im not sure i understand?
I have bought stock at a cost of around £1100 in total.
The stocks value is probably more like 3,000.
But I have purchased things like, postage, stock storage, laptop computer (for trading), and other stationery items including web design etc for a cost of £2,800