Sole Trader Help TAX Return PLease

zygurat789

shap101 wrote: »

Just filled all my details into an Excel worksheet i brought from ebay , it has calculated that for the 2 months 6500 is turnover but is says the total profit - 4000 as this is the amount that i have in stock ?

How does this work in an tax context ?

I am using the SA form which is pretty straight forward as i only have 2 months to complete but will definitely be looking for an accountant in the new year for my yearly report.

Total profit?????

You should have a gross profit ie sales less cost of sales
and a net profit, gross profit less expenses.

Cost of sales is
Stock at start of period add purchases in period less stock at end of period

shap101

Thankyou but it comes up as an minus number .

zygurat789

shap101 wrote: »

Thankyou but it comes up as an minus number .

You do not make it clear as to what you are talking about.
What is it?

shap101

sorry for the confusion .
Just to clarify i started in February with no stock and used my savings from the 2st of the month to buy the stock .

The total amount turnover ( inclusive of everything )is around 6000 for the 2 months but i have spent more than this on stock ( around 10000) .So i am left with an minus figure when i subtract my expenses ( which includes stock ) from the total turnover.

I was just wondering how i carry this over to the next year .
s

chrismac1

You need to add back your closing stock. Let's assume your mark-up is 100%, of the 10,000 you spent on stock 3,000 was used up in making the 6,000 of sales. That means 7,000 is left at the year-end date. You need to add this back to the minus figure you've got after your other expenses.

zygurat789

zygurat789 wrote: »

total profit?????

You should have a gross profit ie sales less cost of sales
and a net profit, gross profit less expenses.

cost of sales is
stock at start of period add purchases in period less stock at end of period

..............

shap101

Thanks for the information , the problem is it is used musical instruments which i sell on Ebay so pricing the items on an future auction will be an problem . Will i have to go through every item i brought in that period then work out what items have sold and deduct what has not ?

zygurat789

shap101 wrote: »

Thanks for the information , the problem is it is used musical instruments which i sell on Ebay so pricing the items on an future auction will be an problem . Will i have to go through every item i brought in that period then work out what items have sold and deduct what has not ?

The value of your stock is what you paid for it.
You know how much money you have in the bank, of course, you should know which items you have in stock at any one time.

jaybeetoo

Davide123 wrote: »

You will need to submit something by 31 jan 2014.

Likely it will be feb to 5 April 13, but s/e people can choose different year ends from the tax year end. It has a cash flow benefit.

Discuss with accountant ?

+1

As a sole trader your trading year can be different to the tax year.

shap101

Cheers

Does this look correct?

Profit & Loss Account

Total income 6,418

Direct costs
Opening stock 0
Stock - items for resale 10,814
Postage costs 641
E-bay fees 576
Closing stock 8,421
20,452 10

Gross profit (14,034)