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  • FIRST POST
    • tro127
    • By tro127 13th Mar 18, 11:48 AM
    • 39Posts
    • 30Thanks
    tro127
    Goods taken for own use
    • #1
    • 13th Mar 18, 11:48 AM
    Goods taken for own use 13th Mar 18 at 11:48 AM
    We run a small limited company that manufacturers and sells children's clothing. We dress our children in the clothes both for photo's and general wear to advertise the items to other parents in the area. How do we account for this? The business benefits from our children wearing the clothes so it doesn't feel like its a straight forward 'Goods for own use' situation but obviously don't want to misreport our accounts. TIA
Page 1
    • Pennywise
    • By Pennywise 13th Mar 18, 12:51 PM
    • 10,036 Posts
    • 18,608 Thanks
    Pennywise
    • #2
    • 13th Mar 18, 12:51 PM
    • #2
    • 13th Mar 18, 12:51 PM
    You should raise sales invoices and pay the company for at least the cost prices of the clothes you take out to use personally. You don't need to pay full retail price, but do need to pay at least what it costs the company.

    The only ones you don't need to pay for are the ones that aren't worn in normal use, i.e. anything worn only for a photoshoot, as long as they're not personally worn afterwards.
    • tro127
    • By tro127 13th Mar 18, 1:00 PM
    • 39 Posts
    • 30 Thanks
    tro127
    • #3
    • 13th Mar 18, 1:00 PM
    • #3
    • 13th Mar 18, 1:00 PM
    Thanks for your response. So just material costs or do we need to include time to make?
    • 00ec25
    • By 00ec25 13th Mar 18, 7:12 PM
    • 6,373 Posts
    • 5,884 Thanks
    00ec25
    • #4
    • 13th Mar 18, 7:12 PM
    • #4
    • 13th Mar 18, 7:12 PM
    Thanks for your response. So just material costs or do we need to include time to make?
    Originally posted by tro127
    if the clothes were not taken by your children then they would be sold to a customer at cost + profit margin

    the cost to the company of you taking them is therefore: materials + cost of labour in making them

    how you cost your labour is down to how sophisticated your accounts are
    • tro127
    • By tro127 14th Mar 18, 10:21 AM
    • 39 Posts
    • 30 Thanks
    tro127
    • #5
    • 14th Mar 18, 10:21 AM
    • #5
    • 14th Mar 18, 10:21 AM
    Thanks 00ec25
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