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bigduckontax, Accountant
Category: UK Tax
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Hello. Im registered self employer and I start selling clothes

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I'm registered self employer and I start selling clothes on eBay. I'm working at home after my full time job. I read lots of Your's responds but still need some advice about expenses and capital allowances. For example expenses on my business is cost of buyed item from wholesale retailer to resell, cost of postage to customers or cost of postage bags etc. But what about if I'll to by shelf’s or new computer or printer to run my business is expenses or capital allowaces.
How I can sort with group i should place my spend money.
Hello, I'm Keith and happy to help you with your question.

What you sell are sales [turnover].

What you buy for your business, clothes, postage, packing materials, telephone calls and so on are all expenses; easy.

Sales less expenses = profit.

The new computer and printer would attract capital allowances with writing down allowances at 18% pa. How ever, there is also a First Year Allowance of 100%, so the capital allowances allow you to write off the lot for tax. That's in a separate part of your Income Tax Self Assessment (SA) form which you complete annually. At your likely level of business sales, expenses and profit (in one part of the SA form) plus the capital allowances (elsewhere in the form) plus the income from your employment and the tax deducted is about all you will need to complete. The daunting SA form is relatively simple once you remember that you only have to fill in those boxes that apply to you. All the rest, and for most of us that's the majority of the form, should be left blank. Don't forget to sign and date it though!
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