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A self-employed trader (construction) has too much Cost of

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A self-employed trader (construction) has too much Cost of goods (around £20 000) - materials (bricks, sand, bolts ...), the Revenue is £37 000. Are there any limits to the cost of goods figure?
Under s 34 IT (Trading & Other Income) Act 2005 (2) only any identifiable proportion of the expenses are allowable. HMRC had allowed 68% of the cost of goods figure as supported by records.
Is he can put all costs of sales in a tax return or no.
Thank you
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Customer: replied 14 days ago.
Hi, thank you so much for your hard work , This is important for me. I will continue yo wait yor answer.
Customer: replied 13 days ago.
I'm still waiting the answer. Thank you

Hi

As long as the costs incurred were all for that specific trading period and all reansobale costs then HMRC will accept the figures

Thanks

Sam, Accountant
Category: Tax
Satisfied Customers: 16419
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Customer: replied 11 days ago.
Thank you Sam, thank you.

you are welcome

Thanks

Sam