Keeping Records from ebay sales...

rose_sparky

Phew! and I thought it was just me!!!!

windswept

You are confusing turnover with cashlow charliecat,
when you put your stock invoice into your accounts format , it's in a separate section to expenses, at least it should be.
to work out your cost of sales : opening stock = £2000
............................................closing stock = £500
............................................cost of sales = £1500
So say your turnover has been £5000, your expenses were £2000 ( including £1500 cost of sales).
your taxable profit is then £3000.
the fact that you originally spent £2000 on stock is irrelevant.
hope that makes sense.

Cute_'n'_Quirky

You can also claim allowable expenses for your internet connection, the cost of electricity and heating and the cost of petrol to and from the post office - but you need to keep records for this too.

Charliecat

Me again...Still not getting the not counting till sold thing:(
In my expenses I will have a reciept for 100 bags. I may have sold 50 of them. Do I not put the reciept in my file till ive sold all 100?
My aplogies for being dim.

windswept

You put your stock receipt into a "goods bought for resale" section, I keep all my stock receipts in a separate folder.
when you come to do your tax return , ( haven't done ours yet-still waiting for p60s:mad: ), you use your cost of sales figure to put in with general expenses, IF your turnover is less than £15000.
if your turnover is more, you fill in a much more in depth part of the tax return, that means you account for everything, such as assets, work in progress etc.
download the tax return from hmrc, and you will see what I mean.
If you have been entering stock into expenses as you buy it, you will have to take all those payments out of your figures.