[Mrs Nicholls]

hi

has everyone got going on their self assessment forms yet?

its our first year where we have turnover over the £15,000 mark (2nd yr trading), and im having to complete all the who when why expenses bit.

might be a daft question, but what do i put in the box as cost of sales? i have always been a bit unsure of what this meant, in my profit and loss forecast ive got cost of supplies as this figure, supplies and goods sold.

am i along the right lines, what do you other service providers put in this box?

many thanks
Lisa

[shelton]

I don't, I get my accountant to do it.

 

[*Chris Browne]

Same here, why don't you get your accountant to sort that side of the business for you Lisa, it would work out at probably not more than a few quid a week with your turnover.

Chris

[BDCS]

Self assessments are meant to be opened and handed over, I don't even bother to read it. The accountants fees come off the tax so look at it like the tax man is paying for his own forms to be filled in

[Art]

Lisa, As the above and you've asked this question before. Get an accountant

Arthur

[Mrs Nicholls]

Hi Art,

i forgot that ive asked it before, must have been in dec or jan time.

Im sorting out an accountant as of today, so hopefully they will help me out.

what do i do? just hand over my book keeping paperwork with receipts?

[Art]

Yes Lisa, that's about it. The way i've always looked at self assesments and things is, it's better to leave all this to an accountant and concentrate your time on developing your business.

Horses for courses

Arthur

[Fox]

Hi

Very good advice and I'm glad you are going to sort out an accountant, you will need to have a meeting with them to define what you would like them to do for you and how much you are going to do to prepare the books, he/she will guide you through everything so don't worry and don't be afraid to say 'can you say that again in English?' if you don't understand!  My first accountant was pretty useless and seemed to hide this with jargon, the accountant I have now explains each step thoroughly.

For the record your cost of sales is the amount of money it has cost you to carry out your work.

Fox 

[Mrs Nicholls]

Hi Fox

Thanks for your reply, so cost of sales would that just be items required to do the cleans then?

cos i think things too much, i would say to do the sale, i need transport, staff, cleaning stuff, but these are under a separate heading arent they?

so in general terms if i sold items to commecial clients i would put the cost of the supplies in the cost of sales box, but the supplies that the girls use in their kit bags arent for sale so they are just cleaning materials.

is this right?

[Fox]

Hi Lisa

Ok, I don't personally do my own return but i produce reports for the accountant (we are ltd) to produce my accounts etc.

Your cost of sales will include things such as the following

All material/stock purchases (regardless of whether they are used or sold)
Wages
Employers NI
Any other costs you may have had such as sub contractor services etc

Then there are administration expenses which will include such things as

Rent
Insurance
Repairs
Advertising
Stationary, postage etc
Telephone/Utility bills
Motor expenses
Professional fees (eg: accountant)
Bank charges
Uniform
and any thing else that is classed as an overhead not a direct sales expense

I hope this has helped somwhat but I am by no means an accountant and do not know what expenses you have in your business.  Please get yourself some professional advice.

Fox