Good morning all,
and THANK YOU for running this fantastic/helpful forum!
I have very little knowledge of business and the accounts side of it but I find the process really exciting and positively challenging. I DO need a little help though please...
I am based in Scotland (UK) and I have been making some jewellery items for many years as a hobby on top of my full time jod as an employee.
I am now in the process of registering my jewellery hobby as a part-time SOLE TRADER venture with HMRC.
The tought of my first tax return or self assesment (not sure what I have to to do really) keeps me awake most night as I am afraid of making silly mistakes.
I kind of understand that if I keep a good track of expenses/sales most of the job will be done easily but my main concern is how to deal with the initial stock I have been accumulating over the years while I was doing this as a hobby?
Some have suggested me to start putting down an estimate figure of what my stock could be worth when I register but I tried to give it a value and it takes ages to count the smallest bits of components, jewellery bits and finished items. It kind of put me off... is there any chance that I can just start selling what I have been making in the past without claiming what it is worth? I would be happy not to claim any stock value and just pay taxes on the profit I make, too much time consuming involved.
I was simply wondering if HMRC would be happy with me selling finished items basically appearing from "nowhere" as I wouldn't be claiming expenses for those initial costs/materials.
I do aplogise if this sounds like a very silly question, but it would be of huge help to get some hints or tips on how to deal with this concern of mine.
Thank you all in advance for your kind and professional support.
Have a fantastic day
and THANK YOU for running this fantastic/helpful forum!
I have very little knowledge of business and the accounts side of it but I find the process really exciting and positively challenging. I DO need a little help though please...
I am based in Scotland (UK) and I have been making some jewellery items for many years as a hobby on top of my full time jod as an employee.
I am now in the process of registering my jewellery hobby as a part-time SOLE TRADER venture with HMRC.
The tought of my first tax return or self assesment (not sure what I have to to do really) keeps me awake most night as I am afraid of making silly mistakes.
I kind of understand that if I keep a good track of expenses/sales most of the job will be done easily but my main concern is how to deal with the initial stock I have been accumulating over the years while I was doing this as a hobby?
Some have suggested me to start putting down an estimate figure of what my stock could be worth when I register but I tried to give it a value and it takes ages to count the smallest bits of components, jewellery bits and finished items. It kind of put me off... is there any chance that I can just start selling what I have been making in the past without claiming what it is worth? I would be happy not to claim any stock value and just pay taxes on the profit I make, too much time consuming involved.
I was simply wondering if HMRC would be happy with me selling finished items basically appearing from "nowhere" as I wouldn't be claiming expenses for those initial costs/materials.
I do aplogise if this sounds like a very silly question, but it would be of huge help to get some hints or tips on how to deal with this concern of mine.
Thank you all in advance for your kind and professional support.
Have a fantastic day