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do i need to fill in a tax return?

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declan37declan37 Forumite
10 posts
Part of the Furniture First Post Combo Breaker
MoneySaving Newbie
Hi hopefully Im in the correct category, years back i was self employed and started up my own online business selling clothing products , I stopped trading about 5 years ago as it was not making me any money, and i had loads of stock left over. I then just got a regular job as an employee.
A friend of mine started their own online business about a year ago and to help me out not to loss any money on my old unsold stock buys it when they need it at the cost i paid for it. i had a loan out for this old stock which i am still paying off with the money they give me and off course some of my own.
Basically i want to know is as im selling them my old stock at the price I bought them at just to get some money back which adds up to about  £1,000 TO £1,500 a year do i have to fill in a tax return form or as im not making any profit as i still am using any money to pay of the loan is it not counted.
Any help would be much appreciated.

Thank u D

Replies

  • PennywisePennywise Forumite
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    How did you account for the stock on your final tax return when you ceased trading?
  • declan37declan37 Forumite
    10 posts
    Part of the Furniture First Post Combo Breaker
    MoneySaving Newbie
    I sold the business name on to another company but they did not want the stock. my accountant sorted it all out so not sure as its now over 5 years ago and the old stock was just in my spare room in the house which i intended to sell at a market  but as i say a friend has now started to buy the old stock at cost price to try and help to pay the  £10,000 loan as i remortgage my house to start the business at the time , i pay off  every month as it shows on my mortgage as 2 loans
  • J_BJ_B Forumite
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    Part of the Furniture 1,000 Posts Name Dropper Photogenic
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    Not sure but if you did do a tax return, could you offset the interest against your non-profit to reduce your tax liability???
  • PennywisePennywise Forumite
    13.1K posts
    Part of the Furniture 10,000 Posts Name Dropper
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    declan37 said:
    I sold the business name on to another company but they did not want the stock. my accountant sorted it all out so not sure as its now over 5 years ago and the old stock was just in my spare room in the house which i intended to sell at a market  but as i say a friend has now started to buy the old stock at cost price to try and help to pay the  £10,000 loan as i remortgage my house to start the business at the time , i pay off  every month as it shows on my mortgage as 2 loans
    You need to find out what was on your last tax return.  Don't you have a copy?  If the stock was adjusted for at cost, then as long as you're selling it at cost, you've nothing to declare as no profit/no loss.  If, however, the stock wasn't adjusted and effectively written off as zero, then you will have a profit and may need to declare.
  • declan37declan37 Forumite
    10 posts
    Part of the Furniture First Post Combo Breaker
    MoneySaving Newbie
    Will do, thank you very much for your help, much appreciated. if adjusted for cost then anything i sell to my friend at cost i have not to declare, if stock was not adjusted and was written off at zero then i might need to declare as it will be profit.
    Once again thank you, just needed some guidance but will contact my accountant at the time to make sure.


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