Tax self-employed craft stall

cowsnhope

Hi all
Over the past ten years I've tried to make stuff to sell with no success however I'm trying again now and I'm using materials and tools that I brought previously. If I actually manage to sell something made with things I brought years ago will I be able to count those things as expenses. My concern is that say I make something and sell it for £20 and my costs were £15 but the materials were brought five years ago will I only pay tax on my profit of £5 or on the whole £20?
Many thanks

cowsnhope

Just thinking that the stuff I already own might be seen as capital but does that mean that if I invested say £1000 in this and made £200 profit that I could carry over £800 into the next tax year?
Sorry - I know I'm being a bit clueless.I'll have to pay an accountant at some point but for the moment I'm just trying to work out how much to charge for what I'm going to try and sell.
Thank you

Suarez

Wouldn't be capital.

It would be stock and valued at the lower of what you paid for it or what it's currently worth.

You say invested £1000 and had £200 receipts to carry over £800 - there is no profit there.

If you paid £1000 for stock, sold £200 stock value for £400 you would have made £200 profit then carry the £800 stock over to the next financial year.

valacky

Hi.

I'm no expert on this but I think if you have previously completed yearly income tax forms then this should be shown as 'unsold stock/materials carried over' into the next tax year(?)
I don't think you can do much about the tools.

Val.