stock / end of year returns

skater_kat

not sure how this is dealt with? apols if its a silly question? sole trader doing SE assessment.

if you buy stock during the last tax year but it will not sell until next tax year, how do you account for this in your returns?

for simplicity of example:

stock purchased in 13/14 totals £1000

will not sell until 14/15 say for £1500

so do you return:

13/14 loss of £1000

14/14 profit of £1500

or:

is it 13/14 loss £0, as you still have the £1k worth of stock as 'assets'? confused..

Suarez

You need your opening stock figure to do this (The closing stock from 12/13 year end)

You would then do opening stock + purchases - closing stock to get your cost of goods sold figure.

Aquamania

skater_kat wrote: »

not sure how this is dealt with? apols if its a silly question? sole trader doing SE assessment.

if you buy stock during the last tax year but it will not sell until next tax year, how do you account for this in your returns?

for simplicity of example:

stock purchased in 13/14 totals £1000

will not sell until 14/15 say for £1500

so do you return:

13/14 loss of £1000

14/14 profit of £1500

or:

is it 13/14 loss £0, as you still have the £1k worth of stock as 'assets'? confused..

Stock is included as assets.

zygurat789

skater_kat wrote: »

not sure how this is dealt with? apols if its a silly question? sole trader doing SE assessment.

if you buy stock during the last tax year but it will not sell until next tax year, how do you account for this in your returns?

for simplicity of example:

stock purchased in 13/14 totals £1000

will not sell until 14/15 say for £1500
You are not taxed until you have realised the profit so no.

so do you return:

13/14 loss of £1000
But you still have the stock, so it must be an asset, no profit, no loss.

14/14 profit of £1500
Presumably 14/15? Stock brought forward £1000 sales £1500 profit £500

or:

is it 13/14 loss £0, as you still have the £1k worth of stock as 'assets'? confused..
Exactly

Still confused?