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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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How do you treat payment for a piece of poetry that has been

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Hello how do you treat payment for a piece of poetry that has been commissioned.
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: To clarify I have commissioned poets to write poetry and paid them I wish to know how to treat this expense

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

 

It would form part of your expense in employment.

Customer: replied 15 days ago.
Hello thank you,

Would I go under "Cost of Sales?"
Customer: replied 15 days ago.
Ah I see, i'd treat it as if I were employing a freelancer. So it's not a cost of sale but a claimable expense?

Treat it whichever heading you prefer.

Customer: replied 15 days ago.
Correct me if I'm wrong,
but if I put it as a "cost of sale" this isn't a claimable expense right?

A cost of sale is one of the claimable expenses.

Customer: replied 15 days ago.
OK Thank you. I'm looking over my 2012-2016 accounts when I used an accountant for my Self Assessment. Would there be any reason why they wouldnt have included Cost of Sales in my expences during those years..?
They included the following as expenses but didn't include Cost of Sales in the Allowable Expences box on my tax return...

Use of home allowance
Telephone
Post and stationery
Travelling
Books, journals, subscriptions Repairs and renewals
Computer costs
Accountancy
Advertising
Depreciation

I cannot possibly comment, but would tend to employ an accountant with a greater knowledge of profit and loss accounting than is currently being displayed.

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Thank you for your support.