How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 3814
Type Your UK Tax Question Here...
bigduckontax is online now
A new question is answered every 9 seconds

Hello. Im registered self employer and I start selling clothes

This answer was rated:

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!
bigduckontax and other UK Tax Specialists are ready to help you
Thank you for your support.