Stock Question

[Impulse1976]

Hi geeks, i wonder if you can help me, i am just setting up my books/accounts and i need to put an open stock figure in. I am going through listing all my products but do you list them with vat or excluding vat. I am not vat registered so do i show the full value of the stock with vat?

Also, is it just the stock that i will be using/selling on clients and not my tools of the trade?

Thanks geeks.

 

[r kelly natural]

don't know if it helps but i supply salt to weston park hotel and i did 2 invoice one with vat one without. he said if i was vat reg he would use the vat one if not the other. ( i am not vat registered)

the other bit of info is you can't claim all your equipment straight away with the tax man i.e if you but a table for £100 you can only claim a % back and the next year the same and so on and so forth so the tax lady from princes trust told me hope this help sorry if it didn't
Racheal

 

[Impulse1976]

Thanks R Kelly.
Isant the % thing to do with depreciation which i dont think they do anymore, i just been on the inland revenue course and they have changed this now, you can claim for the full amount if it is below a certain limit (its in the £35k of all your capital equipment bought in the one year).

 

[AndyP]

to answer your question you shoudl actually speak to the accountant that will draw up you year end accounts, however the general way i believe it is done is that the total value of the stock should be included as you have paid vat and won't be able to claim it back, so your purchase price and therefore the value of the stock. The tools of your trade are assets not stock and can be depreciated down each year to offset he cost against your profits. and yes they definetely do the depreciation thing still, however again you are much better off speaking to an accountant, a good one will save you more than their fees.

 

[collin]

to answer your question you should actually speak to the accountant that will draw up you year end accounts, however the general way i believe it is done is that the total value of the stock should be included as you have paid vat and won't be able to claim it back, so your purchase price and therefore the value of the stock. The tools of your trade are assets not stock and can be depreciated down each year to offset he cost against your profits. and yes they definitely do the depreciation thing still, however again you are much better off speaking to an accountant, a good one will save you more than their fees.

Would agree with these points.Although tools of the trade should be put strait into your P/L accounts if they are small inexpensive items however for larger items of equipment these should be put into your asset section and deprecated down over a number of years.

Sometimes it is better if you put as much as you can through your P&L account as this reduces your profits and therefore tax liability..there are however rules you should follow...a good accountant will advise you correctly on this.
HTH

 

[femmefan]

don't know if it helps but i supply salt to weston park hotel and i did 2 invoice one with vat one without. he said if i was vat reg he would use the vat one if not the other. ( i am not vat registered)

the other bit of info is you can't claim all your equipment straight away with the tax man i.e if you but a table for £100 you can only claim a % back and the next year the same and so on and so forth so the tax lady from princes trust told me hope this help sorry if it didn't
Racheal

Just a word of caution. I would check with customs & excise about raising vat invoices. I really don't think you are allowed to if you are not vat registered. Just send the company your invoice without vat or you might get into trouble.

Cheers,
Hazel