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self assessment help please?!

(9 Posts)
differentagainname Tue 29-Jan-13 21:44:52

Does anyone know if there's any way I can factor in my stock levels into my tax return i.e. can I offset any of the profit against end of year stocktake? I seem to remember something being said about this at a course i attended but have forgotten the detail sad

Sorry, am confused.

Thanks

Melissakitkat Tue 29-Jan-13 21:47:12

In the p&l you add your opening stock to purchases made in the year then take away closing stock this equals cost of sales!

Melissakitkat Tue 29-Jan-13 21:49:22

Sales 15

Opening stock 7
Purchases 10
Closing stock (3)

Cost of sales 14

Profit - 15-14= 1

differentagainname Tue 29-Jan-13 22:02:25

Oh dear - I am really clueless it turns out (and a bit panicky about tax bill!). Am just trying to get my head round this. Thank you so much. May have another question in a minute........

differentagainname Tue 29-Jan-13 22:05:38

It's no good. I can't get my head round it. What is the difference between sales and cost of sales? blush

Melissakitkat Tue 29-Jan-13 22:09:24

In the above diagram - sales is the amount you have sold in £ I.e. 15.

Cost of sales is the cost of your purchases taking into account stock levels at beginning and end of year in the above example this is 14.

Melissakitkat Tue 29-Jan-13 22:10:54

7 plus 10 takeaway 3 equals 14.

differentagainname Tue 29-Jan-13 22:23:42

Thank you so much - sorry to be dense sad. Am letting myself get too stressed about this I think......

Lesson learnt - complete self assessment in good time next year to avoid last minute panic!

Melissakitkat Tue 29-Jan-13 22:26:38

Lol I am an accountant and I always leave mine till last minute too - you would think i would learn! Best of luck with it, night night off to bed now. :0)

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