Writing off stock & VAT - anyone know?

blue_monkey_2

Hi,

I have to throw some stock away which was a really stupid buy a couple of years ago that I have not been able to sell, but now the damn hasgot to it so I am just throwing it away.

I take it I can write the stock off in my books myself but does anyone have any idea what do about the VAT I paid on the goods and whether I can claim it back. And if so, how do i do this. The stock will be gone this weekend so I need to get my finger out really, any info would be great.

Thanks

PS, it is not goods that are of use to anyone so cannot be freecycled or given to charity either so it will be going in the skip bag.

COOLTRIKERCHICK

i should imagine there is a way of writting it off so to speak...
all i can say is when my mother has stock that hasnt sold even in the sale, she gives it to the local charity shop, which then writes her a reciept for the amount of items/retail value of the clothes. which she then gives to her accountant. as stock loss.

when we had a pet shop we used to have a book of anything that died....i know it sounds awfull but in reality it does happen, the main ones were the fish...which i think the accountant used to put down as loses, which off set the profit (or lack of it)

all i can say is make a record of exactly what you dispose off the the total amount it cost you the price of the skip etc...and give this to your accountant and make a point of showing them..or why dont you phone the tax/vatman and ask them how you stand, and what exactly can you claim

but i am sure there will be someone on here who will tell you the right way of doing it..

Pennywise

If you are VAT registered, you should have already reclaimed the VAT when you bought the stock, so you can't claim twice. If you aren't VAT registered, you can't claim the vat back at all.

Assuming at the previous tax year end it was included in stock, which I assume you did add back in your tax return didn't you? So this year end, it won't be. So when you account for the stock difference in your tax return, it will automatically be claimed.

blue_monkey_2

Thanks guys, yes, I got it the wrong way around and meant would I have to pay back the VAT I claimed. The answer is no I have been told and I just need to write off all I dispose of. I don't do a stock take each year but work though my Cost of Sales of all the sales I have done that year (LOL, sounds long winded but is much easier I promise) and use those figures for my Self Assessment on the 'cost of sales' box.

Many thanks.