New sole trader business questions

Mistral001

zygurat789 wrote: »

However, it could be argued that he has wandered into the nature of a trade by buying these items andf selling them so the whole other entity is pointless.
It is normal to introduce personal irtems when commencing to trade, the only question is valuation. Any overvaluation will result in a low profit margin which may be picked up by HMRC

Yes it could be argued if you had not been following this thread. Read the thread.

zygurat789

Mistral001 wrote: »

Yes it could be argued if you had not been following this thread. Read the thread.

I have read the thread, most of which is about use of home.
I have also noted your posts concerning the operation of an Ltd. It would be important to value this stock correctly given the unusual circumstances.
To be able to value this stock it would be necessary to know exactly what it was.

I was pointing out that selling the stock to a wholly owned Ltd so that it could trade was a trading transaction thus giving rise to a sole trading tax return and a corporation tax return. The fact that an ltd is being used does not necessarily absolve the OP from having been a sole trader, if only for one transaction.

You obviosly didn't fully appreciate the point I was making, probably because you had a good night last night, I hope your hangover has subsided