Declaring income in self assessment

I am selling items as a sole trader and I am also VAT registered. Should the income in the self assessment inclusive or exclusive of VAT? for e.g. If I sold an item at £120 and paying £20 VAT. Then the income amount should be £100 or £120?

Hi,

You can record your business income and expenses either excluding or including VAT. However, you must treat income and expenses the same way. If you choose to include VAT, you have to record VAT payments you make to HM Revenue and Customs as expenses, and VAT repayments you receive from HMRC as income. You can see guidance here:                                                               
VAT registered businesses

Thank you.

Thanks Admin 19

As a non registered individual you cannot charge or claim VAT. Your question is a bit vague. If you are selling a item for £120,00 that is the income you received and the income you declare on your tax return. Are you saying you purchased some thing for £100 and paid £120 including VAT. If you then sell the item for £120 then you made a loss as you can't claim the £20 but you still have to report £120 as income.

I am VAT registered. So in this example if I sell a item £120 (inl VAT) and I buy an item also £120 (inl VAT) . According to Admin 19 I either put £120 as income and £120 as expense including VAT) or £100 as income and £100 as expense (excluding VAT) . Sounds making sense