UK Phones refurbishing and then sales - what is considered as a profit and what allowance can claim

[gerard80]

Hello Everyone,

Just looking for a bit of advice regarding tax return.
I did my accountancy for 2018-2019, included some phone sales, included cost of parts replaced, but I didn't include any cost to get parts replaced. I replaced myself.
I was just wondering how could I calculate the cost of replacing them parts to refurbish and fix broken phones, is there anything I could do about this? Is there any % that I could apply to this cause I spent a number of hours to get them fix and then sale, but just didn't include any amount for my time.
Could You please let me know if there's anything I could do abt this?

Is there any allowance or sth. I feel that it would not be fair to consider my sales profit as a total profit received hence I engaged in ordering parts, spent my time to get phones refurbished or fixed.
If You would like to get phone fixed somewhere, ie get the iphone 7 screen replaced You would have to pay 60 quid so how do I go about this in my case if I did it myself?
Why would the HMRC consider my profit but would not take into consideration the cost of the actual time spent to get it fixed?

Is there any chance I could amend my tax return for 2018-2019?

Many Thanks for advice.

 

[Fidget]

Assuming you're a sole trader, I'm not sure if it actually matters in this case. If you were deducting a cost for your own time you spent, you'd essentially be paying yourself, which would be subject to income tax and NI. It would reduce your profits by the same amount, but you'd still be taxed on the part that you paid yourself and taxed on remaining profits, so it'll work out that you pay the same amount of tax anyway.

 

[gerard80]

Thank You.
Please close this thread as resolved.