Selling items bought as self-employed

regan22

Hi,

I bought some products used to provide a service as self-employed a few years ago and offset the cost of them against my tax as entitled to, however I am now wondering what I need to do now that I wish to sell and replace them. Does the sale of the products constitute income and must I tax myself on their sold value? I know that if you're a VAT registered company, which I am not, you have to charge VAT on things like this.

HappyMJ

If you've written it off against tax then it has now has no value. You can do with it as you please...give it to yourself (a zero value gift from the business) and sell it.

Suarez

What is the product?

densol_2

HappyMJ wrote: »

If you've written it off against tax then it has now has no value. You can do with it as you please...give it to yourself (a zero value gift from the business) and sell it.

That's not correct - if it's plant and a capital allowance was received for it - depending on the amount of the allowance ( AIA, first year or general pool ) there will be a notional depreciated value attached to the item. If it's sold for more than the depreciated value a balancing allowance needs to be made. If it sells ( at arms length for true value ) for less than it's depreciated value a further capital allowance can be claimed - but this is rare unless it got damaged as Hmrc depreciation % are generous I've found