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Posted Thu, 23 Mar 2023 18:38:00 GMT by Josh
Hello, In this example scenario, I have a stock of 100 greeting cards in different designs purchased for £50, so a unit cost of £0.50 each. I notice a mistake in some of the cards and need to dispose of them because I don't want to sell them with this mistake. So I am going to dispose of 20 cards, which would have originally cost me £10 to purchase. If I had already claimed an allowable expense for the cost of printing the cards in a previous tax year, how can I record the disposal of those 20 stock items in my next self-assessment return? If I were to take them for my own personal use, I understand I would put a figure of £10 into the "Goods and/or services for your own use" box. But since they are being disposed of, is there another way this should be recorded in the return? I am using the cash basis accounting method. Any advice would be much appreciated.
Posted Thu, 30 Mar 2023 11:33:55 GMT by HMRC Admin 2

Sorry, we are unable to comment on hypothetical scenarios.

You can find guidance on cash basis here:

Cash basis

Thank you.

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