UK FBA- Sole Trader and Self Assesment
Hi all,
Amazon have asked me to move to a sole trader/company i guess to the amount i sell which i am now in process of getting UTR number from HMRC
i will need to start doing self assessment forms.
Has anyone got a spreadsheet who has gone down this path in terms of what I can list as an expense (I am reading lots from the HMRC site) but more if purchased inventory can be counted against profit/loss
Thanks
UK FBA- Sole Trader and Self Assesment
Hi all,
Amazon have asked me to move to a sole trader/company i guess to the amount i sell which i am now in process of getting UTR number from HMRC
i will need to start doing self assessment forms.
Has anyone got a spreadsheet who has gone down this path in terms of what I can list as an expense (I am reading lots from the HMRC site) but more if purchased inventory can be counted against profit/loss
Thanks
11 replies
Seller_amUAzjvL5uIzu
Its pretty straightforward,in very simple terms: Sales Total - goods purchase price - expenses(fees/postage/stationary/vehicle expenses/phone/internet costs etc = profit.Get more complicated if you reach the VAT threshold.
If you are just registering now for the current tax year Apr19 to Apr 20 you have no need to fill out your self assessment tax return until Jan 2021.
Seller_DTufFoxJuMU0M
It sounds very daunting but is quite simple (until you hit VAT, then it gets complicated). The more you do along the way the less you’ll have to do at the end of the year when you’re doing your return. (I have mine double checked, filed away and submitted in a few hours each year)
I’m like Russ my accounts go from 1st april to 31st march.
I just have one spreadsheet tracking the sales I’ve posted each day (or totals from all my platforms) and tracking every receipt or invoice (keep these for 6 years!). Each month has its own tab. Then its simply a matter of taking your total expenses off your total sales. You can claim for everything that it costs you to run your business, from the stock you buy, to your postage costs, right down the envelope and the ink in your printer, if you buy it to run/maintain your business then its a business expense) You can also claim back petrol if you drive to the post office to post your orders. Gets a bit more complicated if you’re working out of home, or sharing say your printer for personal and business use. I believe then you can take a percentage etc. Might be worth making an appointment with an accountant just to get some advice on what you can and can’t claim if you are storing stock in your house etc.
At the end of the year its just making sure that all figures are in, I have all the receipts/invoices I’m claiming as an expense, and am claiming expenses on all my receipts.
Then go online and fill in the boxes (I find online easier but I do roughly fill out a paper on first
Seller_0Amk0hnQkPWMH
If you have been buying items to sell, you should always have been registered as a business (Sole Trader) with both Amazon and HMRC, and filing self-assessment tax returns - it has nothing to do with how much you sell.
If you are selling off your old unwanted stuff, you do not need to be registered as a Sole Trader.
The definitions are quite straightforward.
If it is the former, then HMRC may come after you for tax on your past earnings which you have not declared.
Good luck
