Tax return materials connundrum.

[WaterTight]

You declare your income and you submit all your material receipts.

But most people end up with a lot of materials on the van. They already claimed the full cost of which offset against their earnings.

Presumably this evens out because you then use them up next year, have less material receipts to offset against your earnings.

But would this technically mean that once you retire you owe HMRC the value of everything on your van?

 

[Best]

You are supposed to have stock showing in your books.
Technically the government could finally say you have stock (which in reality is cash and not necessarily partly or entirely money lost), but I doubt if it matters much unless you had thousands in stock finally left.
Unless you are fantastic at keeping careful records of stock in and out, then only way would be do a stocktake occasionally to keep it all accurate

 

[WaterTight]

Hmm. That makes sense.

I wonder how many people here declare estimates of what stock they have on the van then.. And how many just claim for all material receipts collected through the year.

 

[Chalked]

Most accountants would say you have £500-£1000 of stock. Hmrc would expect this.
But as you say , it evens out. As you will do a job with that stock. Therefore you will invoice materials without having to purchase them.

 

[WaterTight]

Ah, I've never managed to read my tax return all the way through without losing consciousness. He may well have done just that and estimated a stock level.