Selling stock from old business?

seashore22

I suppose this isn't strictly speaking a tax question, but I didn't see anywhere better to put this.

I had a very small business for a few years making and selling handmade cushions etc. It was all above board - registered with HMRC and completing a self assessment tax return every year. It wasn't much more than a hobby and I had to give this up about 18 months ago.

I have a small amount of stock left and don't know what to do with it. Is my only choice to give it away to charity as I assume selling it at a car boot sale, along with the rest of the household stuff would be a problem? Has anyone been in this situation and think it's worth giving HMRC a call? I didn't want to waste HMRC's time and my money on an unnecessary call to them, so thought it was worth getting some opinions on here first.

zygurat789

seashore22 wrote: »

I suppose this isn't strictly speaking a tax question, but I didn't see anywhere better to put this.

I had a very small business for a few years making and selling handmade cushions etc. It was all above board - registered with HMRC and completing a self assessment tax return every year. It wasn't much more than a hobby and I had to give this up about 18 months ago.

I have a small amount of stock left and don't know what to do with it. Is my only choice to give it away to charity as I assume selling it at a car boot sale, along with the rest of the household stuff would be a problem? Has anyone been in this situation and think it's worth giving HMRC a call? I didn't want to waste HMRC's time and my money on an unnecessary call to them, so thought it was worth getting some opinions on here first.

I'd say that this is exactly what it is.
How did you deal with this stock in your last tax return?
What was the cost of this stock?
How much will you sell it for?

seashore22

I only did really simple accounts, so didn't really account for held stock. I just did costs against amounts sold.

I made no overall profit from the business at all - losses in the first year and tiny profit in the last two. Like i said, more of an expensive hobby than a money making venture.

At a car boot sale I would expect to make no more than £50 at the most. I'm doing a boot sale anyway because my grown up daughter wants to sell a few things, so it seemed silly not to consider taking the bits of stock. If my only option is to give it to charity then fair enough and at least it will be disposed of sooner rather than later.

I suppose I could contact HMRC and possibly fill in another tax return for this year, but for £50 it hardly seems worth it.

Atidi

seashore22 wrote: »

I suppose this isn't strictly speaking a tax question, but I didn't see anywhere better to put this.

I had a very small business for a few years making and selling handmade cushions etc. It was all above board - registered with HMRC and completing a self assessment tax return every year. It wasn't much more than a hobby and I had to give this up about 18 months ago.

I have a small amount of stock left and don't know what to do with it. Is my only choice to give it away to charity as I assume selling it at a car boot sale, along with the rest of the household stuff would be a problem? Has anyone been in this situation and think it's worth giving HMRC a call? I didn't want to waste HMRC's time and my money on an unnecessary call to them, so thought it was worth getting some opinions on here first.

I can't see any issue with you starting up again and selling the stock ... as long as you keep HMRC fully informed.

DigForVictory

If £50 will show up in your bank account, household shopping patterns, clear a debt, or just stand out in the general noise, I'd declare it. You might not have to complete a return - a letter would probably be enough.

They can get awful snicky about 'discovered' monies sometimes.

Atidi

seashore22 wrote: »

I only did really simple accounts, so didn't really account for held stock. I just did costs against amounts sold.

I made no overall profit from the business at all - losses in the first year and tiny profit in the last two. Like i said, more of an expensive hobby than a money making venture....

I suggest you get professional advice, and then provide HMRC with correct figures.

le_loup

Atidi wrote: »

I suggest you get professional advice, and then provide HMRC with correct figures.

For a fifty quid sale!

zygurat789

seashore22 wrote: »

I only did really simple accounts, so didn't really account for held stock. I just did costs against amounts sold.

I made no overall profit from the business at all - losses in the first year and tiny profit in the last two. Like i said, more of an expensive hobby than a money making venture.

At a car boot sale I would expect to make no more than £50 at the most. I'm doing a boot sale anyway because my grown up daughter wants to sell a few things, so it seemed silly not to consider taking the bits of stock. If my only option is to give it to charity then fair enough and at least it will be disposed of sooner rather than later.

I suppose I could contact HMRC and possibly fill in another tax return for this year, but for £50 it hardly seems worth it.

The reason why you made so littlt profit was because you were not accounting for stock in the (strictly speaking) correct way. Effectively you have had the tax relief for the purchase of these goods in your last accounts. This is OK because as the business was discontinued this stock had nil value. Now, later, you have realised a few pounds. To be all above board you should write to HMRC, after the event, and advise him of the amount, mentioning one-off and non-recurring. He may then amend you tax code, you are paying tax, aren't you.
Lots of people take lots of things to car boot sales, they may sell or they may not sell at the asking price or well below. Usually it's for cash and I'm sure that some of this should be declared but isn't and they never find out about it unless it becomes a regular thing or generated substantial sums.

Atidi

le_loup wrote: »

For a fifty quid sale!

Yes, it's all got to be reported to HMRC ... unless you are advocating the OP evade tax :cool:

seashore22

Thanks everyone.

I'm sure the Macmillan would love a bag of padded hearts to sell. Being on hold to HMRC, if I ring them, would probably wipe out all of the £50 anyway, if my previous experience is anything to go by.

zygurat789

Atidi wrote: »

Yes, it's all got to be reported to HMRC ... unless you are advocating the OP evade tax :cool:

Go tell it to the CIH plumber