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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4985
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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, I am currently self employed in the UK and selling goods

Resolved Question:

Hi,
I am currently self employed in the UK and selling goods on Amazon.co.uk. I have just Opened a Hong Kong company and would like to stop being self employed and transfer ownership of my current inventory of sellable stock to the new Hong Kong company.
Should I sell my remaining stock to the Hong Kong company (if so, at what price)? Or should I declare only the expenses of the items I sold and just give the remainder to the new company?
Thanks!
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

You can sell the stock at cost so there is no profit to be declared on your self employed trading account.

This would be much neater way to reflect sale of goods albeit to your new company trading from Hong Kong.

Expenses incurred in the procurement of stock and subsequent transfer to the new company can be expensed in your self employed sole trader accounts in the normal way.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.

Thank you. Can I continue to sell this stock from the same amazon account if I change the name on the account to my Hong Kong Company name and sell the stock? Or do you think I will need to open a new account?

Expert:  taxadvisor.uk replied 2 years ago.

.Thank you for reply.

It would be good practice to open a new account on a going basis to ensure there is separation. In the interim period, you can use the same account.

If it is possible to change the name on the account to the new company then there is no need to open a new account as you would have audit trail of transaction undertaken by the new company.

I hope it is helpful.

Customer: replied 2 years ago.

Ok Thank you!


Since I will no longer be conducting business as self-employed in the UK past the 2014/15 tax year, I am hoping my last tax payment to HMRC will be in January 2016. What must I do prior to this to stop HMRC from requesting half the following year's tax in June/July 2016 and any more subsequent tax dues. I wish to totally pull myself out of self-assessment obligations as soon as this imminent tax year end is here.

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.

When you file your tax return 2015, you can request to reduce payments on account for tax year 2015-16 by completing a Form SA303 - Claim to reduce payments on account.

More information on this can be found here

https://www.gov.uk/government/publications/self-assessment-claim-to-reduce-payments-on-account-sa303


I hope this is helpful.

If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it.

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.