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stock / end of year returns
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skater_kat
Posts: 751 Forumite


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..
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..
0
Comments
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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.0 -
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.0 -
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?The only thing that is constant is change.0
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