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View Full Version : A couple of questions - expenses etc



jiras410
18-02-2010, 04:17 PM
Hey guys,
Ive never tried to sell my cards but want to give it a go. I am already registered self employed as a prop maker and do my tax return every year anyway so I think Im sorted there. Or do I need to let anyone know if I am also selling my own makes rather than working as a freelancer in workshops etc?! Its kinda prop making (in very broad terms) I would have thought... props ... cards. As long as they get their tax Im sure they dont mind.
I claim expenses such as tools and safety wear etc every year and I have read in the forum someone mentioned claiming materials as expenses but surely they would be recovered by the selling price? Can anyone confirm either way what I can claim as expenses when selling my cards.
Thanks very much!

Seahorse
18-02-2010, 04:20 PM
Sorry I really cant help, but how did you get into prop making.Would I have seen anything youve made?

AliCat
18-02-2010, 04:21 PM
Once you are self employed, I don't think Mr Taxman cares about what you are doing (you may just have to adjust if you have yourself as a prop maker only on your tax return but I don't think it is critical)

The most basic way of looking at expenses is anything you spend is an expense and anything you get paid (including interest in the bank) is income. Whilst the cost of your stock is included in the price a customer pays, this is to give you a profit on your work. The full amount is still an expense - this includes raw materials, fairs, display materials, etc.

Hope this helps.

Trisha
18-03-2010, 12:47 PM
I've asked a similar question as I'm registered to do affiliate marketing through my website but now I'm going into retailing as well. They have said that if it's all under the same business name and basically just expanding the same business then you just need to put it in the description of your business on the tax return.

greannancrafts
18-03-2010, 04:53 PM
Why not contact your local tax office?

They are lovely and run courses to help you, we as tax payers pay them a lot of money, so put them to good use;)

Jane

Daesul
18-03-2010, 09:04 PM
Yes, you should put down raw materials as expenses, and that sum will then be added to the amount you can earn before paying tax.

I recently attended an HMRC course and I set up my own spreadsheet from their example one in the booklet they gave us. They show a 'raw materials' column in their example so it must be correct!

Bea
18-03-2010, 09:09 PM
If you've got one of your old tax returns, maybe you can look back and see where you put your expenses (materials purchased) and sales?

As mentioned the HMRC courses are free to attend. I went to one when I first started years ago and it was well worth it.