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  • Question about stock & self assessment.

    I hope I explain this query well, I know what I'm trying to say.

    Pretty soon I'll be doing my first self assessment form. I have a certificate from the IR for my National Insurance exemption as I make so little from my craft sales.

    Obviously I understand that on my self-assessment form, I will be listing all of my sales/profit and costs/expenses.

    But at what point does the stock that I hold become relevant? I assume that it must be carried forward or represented in some way in my figures.

    I have a mixture of completed craft items (which have a price attached to them that I would sell them at) and I also have blank items or materials that I have not worked on yet. When these are listed as stock, are they listed at the price that I bought them for 'raw' or at the price that they would eventually sell for?

    Hopefully someone somewhere can make sense of my ramblings and explain things more clearly for me!

    Si.
    Wood Tattoos
    Decorative Pyrography for all Occasions - Author of "Woodburning with Style" (2010) and "Learn to Burn" (2013)
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  • #2
    Sorry, just bumping this so that someone can help me with an answer!

    Si.
    Wood Tattoos
    Decorative Pyrography for all Occasions - Author of "Woodburning with Style" (2010) and "Learn to Burn" (2013)
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    • #3
      Hi Si

      Stocktake always makes my head hurt so don't know how much help I'll be. I do believe however that the raw materials need to be valued at what they're worth now in their unmade state - so basically whatever you paid for them. No idea about the completed pieces though soz.
      Visit Natty Netty for a huge selection of Iris Folding supplies

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      • #4
        Originally posted by nattynetty View Post
        Hi Si

        Stocktake always makes my head hurt so don't know how much help I'll be. I do believe however that the raw materials need to be valued at what they're worth now in their unmade state - so basically whatever you paid for them. No idea about the completed pieces though soz.
        Thanks for the info! Si.
        Wood Tattoos
        Decorative Pyrography for all Occasions - Author of "Woodburning with Style" (2010) and "Learn to Burn" (2013)
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        • #5
          Hi,
          My OH who, bless him, does all my accounts and stuff said I need to value my made up ready to sell stock at cost value ie the cost of all materials used to put together.
          I have to admit numbers are not my thing so good luck with your forms.
          Ann

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          • #6
            As long as your return is not overdue, you can go into the tax office (might need an appointment) and ask them for help filling in the return. I think you can telephone them as well - perhaps this would be the best first step. Good luck!
            www.oldbagcrafts.com
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            • #7
              You add up your finished stock, and unused materials at the price you paid for them, as at close of business 5th April.

              If you have any stock displayed on sale or return anywhere, or any outstanding invoices you're waiting for payment of, then include these as if the stock is still in your possession.

              It's fine after you've completed the first one, and the Inland Revenue help line is very good.

              Debbie
              www.beadservice.net
              On-line bead supplier and bead lover

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              • #8
                I just looked up my self assessment form from last year. There is a section for 'summary of balance sheet' which includes stock and work in progress. It says at the top of the page "leave these pages blank if you do not have a balance sheet. So I think you could get away with not filling that section in.

                I'm not sure what happens in the second year, as last year was my first year.

                Also for anyone reading this who will be doing there self assessment form themselves for the first time this year, it's not as bad as you think it is. Remember that most of you will have made less than £15,000 from your craft so wont have that much to fill in, just what you made and what you spent really.

                Cheers
                Carol
                Sparklez.co.uk
                Handmade Jewellery

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                • #9
                  Eeeeek!!Panic.

                  I assumed(as I always seem to do)you tell the IR what youve spent and what youve made and from that they can tell if youve made a profit or not!!
                  I hope it doesnt get more complicated than that!!

                  The things Im worried/confused about is the fact that Im using jewellery materials that I bought about 2/3 years ago that may come in handy in my business at some point in the future.
                  Am I allowed to do that?

                  I also may want to do some sewing work in the future, do I include my overlocker wheich Id use but have had for 3 years, and my sewing machine Ive had for 17 years???
                  https://folksy.com/shops/GrimmExhibition


                  http://poisonedapplecraftuk.blogspot.co.uk/

                  Poisoned Apple Theatre - Handmade Crafts on Facebook

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                  • #10
                    accounting for your sewing machine

                    hi there,Im new to all this aswell but have just done a course with the
                    tax people. items which you are already in possession of can be counted in your expenses but only at 50% of their current value, and then reducing by 50% again next year and so on. so say if your machine is now worth £1000, you can put £500 down in your expenses this year,then 50% of that next year which would be £250 then 50% of that the following year and so it goes on! Its all v confusing I know! but I hope this goes someway to explaing a little.
                    Oh, and if you are not set to make a profit this year then dont put your machine down in expenses yet as you can offset it next year against profits thus reducing your tax bill (woo hoo!)
                    You can do this with most large items,even cars,but I think cars are worked out at 25% of their value (or you can claim 40p per mile)
                    o.k Im stopping now because its all getting a bit blah blah!

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                    • #11
                      Originally posted by drynosedog View Post
                      hi there,Im new to all this aswell but have just done a course with the
                      tax people. items which you are already in possession of can be counted in your expenses but only at 50% of their current value, and then reducing by 50% again next year and so on. so say if your machine is now worth £1000, you can put £500 down in your expenses this year,then 50% of that next year which would be £250 then 50% of that the following year and so it goes on! Its all v confusing I know! but I hope this goes someway to explaing a little.
                      Oh, and if you are not set to make a profit this year then dont put your machine down in expenses yet as you can offset it next year against profits thus reducing your tax bill (woo hoo!)
                      You can do this with most large items,even cars,but I think cars are worked out at 25% of their value (or you can claim 40p per mile)
                      o.k Im stopping now because its all getting a bit blah blah!

                      Thats very interesting and makes sense.Thank you.
                      Im sure il get things wrong, but I can promise Im not trying to diddle the IR out of any money.Im hoping itl all make more sense when I can actually see the form.
                      https://folksy.com/shops/GrimmExhibition


                      http://poisonedapplecraftuk.blogspot.co.uk/

                      Poisoned Apple Theatre - Handmade Crafts on Facebook

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                      • #12
                        Thanks for all the information from all who've contributed. I'm sure my first year's figures will give me no end of fun when the time finally comes! Anyway, my takings don't even go into 4 figures so I'm sure that it won't be a massive problem. Oh, to be rich and successful...

                        Si.
                        Wood Tattoos
                        Decorative Pyrography for all Occasions - Author of "Woodburning with Style" (2010) and "Learn to Burn" (2013)
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                        • #13
                          4 figures!!Ive just about made it to two figures.
                          https://folksy.com/shops/GrimmExhibition


                          http://poisonedapplecraftuk.blogspot.co.uk/

                          Poisoned Apple Theatre - Handmade Crafts on Facebook

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