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How do you write off stock?

I've got lots of stock that needs writing off because it's ruined - it's either unsellable in my marketplace or broken/damaged. I'm not sure how to do this, because I'm worried that Mr Taxman will think I just wrote it off to avoid tax. So my question really is, when you write off stock, what do you do with it afterwards?? What if the taxman asks for proof that I haven't got is, a la weapons of mass destruction?! So far I've been keeping it in boxes in case they ask me, but I'm drowning in a sea of boxes! Some of the stock is beyond redemption but some might fetch a couple of quid at a car boot - am I allowed to give it to them so they can flog it?

I've always been the type to repair stuff and make the best of it even if it means selling it at a loss to get some capital back, but I just don't have time for this anymore. It just feels wrong that I can write it off when someone else might profit from it.

Could someone please fill me in? Many thanks.

Reply to
Maria
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We just don't include it in the stock check at the year end.

I suppose if it was an appreciable amount then you could include an item for "loss on disposal of damaged stock" in the accounts.

(Email for you on the website BTW).

Did you ever resolve your issues with Google ?

DG

Reply to
Derek Geldard

You do include it, but you include it at: "The lower of cost or realisable value". If it has zero value include it in the stock at £nil. If you dispose of it, you either scrap it or give it a value.

No.

Reply to
Troy Steadman

We sell machines at £20k.

Except for whole machines our accountant does not reconcile the stock at the beginning of the year with the stock at the end of the year and all the transactions. If someone drops a box of lamps and they all get broken they simply do not go into the stock at the year end.

Our accountant did that for a motor car we sold at a loss. Is that different?

DG

Reply to
Derek ^

In message , Derek ^ writes

Yes. I assume you are not a car dealer, in which case the car was not 'stock' but an asset in the balance sheet which was depreciated each year. If you sell it for a price different to the depreciated value then you need an entry in the P&L of a loss or a profit so as to account for the difference.

Reply to
john boyle

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