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  • Allowable Expenses for Sole Trader

    Hello all,

    Its time to get my tax return in order again but its only the second time i have ever done one so need some advice, last year I didn't claim any expenses at all mainly because i found it all so confusing. But this time I have been reading various sources which say i can claim for cost of stock purchased to resell, I build computer systems to order so does this mean I can claim for the cost of the parts I purchased to do this? And is it a proportion or the full amount?

    Thanks in advance for any advice.

  • #2
    Re: Allowable Expenses for Sole Trader

    I think SXGuy will be able to answer your question.
    Let your smile change the world but don't let the world change your smile


    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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    • #3
      Re: Allowable Expenses for Sole Trader

      Stock is a business asset,goes into profit and loss account. Tax is due. Stock relief was dropped years ago.

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      • #4
        Re: Allowable Expenses for Sole Trader

        Enforcer, this isn't stock to store in a shop, this is purchases the op has made to carry out the work and charge accordingly. Therefore its a cost of sales.

        Yes its an allowable expense.

        The tax due is charged on the net profit, the stock bought would have already been included in the charge to the client at that time.

        Work Completed XXXX
        Less Cost of Sales
        GROSS PRFOFT.

        For tax return purposes, the expenses box, is the total expenses, plus cost of sales.
        Last edited by SXGuy; 12 May 2014, 11:14.
        I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

        If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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        • #5
          Re: Allowable Expenses for Sole Trader

          Yes, highways used all of the items, they are a cost of sales. Any parts in stock after computers are built would be stock asset.

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          • #6
            Re: Allowable Expenses for Sole Trader

            Yep, Agree
            I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

            If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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