quick question as a sole trader regarding accounts

martindow

Pennywise wrote: »

You could say the same about a house. It won't depreciate, so the business buys it, the owner lives in it, and then sells it afterwards. There'd be personal tax on the owner even though the value of the house hasn't fallen.

In that situation the value of living in the house can be quantified - presumably the benefit of not having to pay rent - which can be used to calculate a tax liability.

Going back to the OP, how can she put a figure on the value of wearing a dress from her stock occasionally? And in my case vases sitting on my windowsills rather than being hidden in boxes. I quite enjoy them being there but how do I calculate the monetary value for me being able to look at them? Presumably you have to come up with a value of a certain number of pounds to be able to calculate what tax should be paid.

Thanks for humouring me on this Pennywise - I am well aware that you are an expert (and I'm not!).