Hi,
I am planning to start up a sole trader, selling paintings and drawings online. I have not yet registered with HMRC, or set up my Quick File account. I am completely new to running a business, but over the last five years !i have purchased various artworks which I would like to now use as initial sales stock to start my business. I initially I purchased these with my personal account, but subsequently I have been using an account that I set up for the purpose of being a business only account. I have receipts for most items apart from some I have bought from car boot sales. I
My questions are
1 How do I account for these items being added to my inventory of sales stock.
2 How can I balance my accounts against my bank statements if these items were purchased a long time prior to the business startup and the financial year.
3 Do I have to show that I have re-embursed my personal account the cost of the items I have added to my business.
3 What do I do about those items I do not have receipts for.
I am considering not registering for VAT as most of my purchases were made from non VAT registered sellersI , so the issue of claiming back VAT is not my main concern , however I would be interested to know if this is possible with the items I have paid VAT on if I do decide to register.
I would appreciate any advice/ help. I plenty of information about adding items as assets, but not adding sales stock purchased prior to business startup. The value of the stock is also more likely to have increased so this would be counter to the depreciation factors applied to assets.
Thanks
Stuart
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