This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Limited Liability Partnership 1st Tax Return help

DarrenNeil
Posts: 1
Joined: Sat Jan 12, 2019 3:31 pm

Limited Liability Partnership 1st Tax Return help

Postby DarrenNeil » Sat Jan 12, 2019 3:35 pm

Hi everyone. Any help on this would be much appreciated!
We are in the process of filing our first tax return to HMRC, and have run into some issues I hope someone can help us with. We started a L.L.P (Registered in the U.K) with one partner in Japan and the second resident in the U.K. We basically buy in mobile electronic display devices from China which we hope to rent to event organizers in the U.K. Secondly we are prototyping a separate static device which uses the same display technology, again for eventual rent to retailers. I have several questions and hope thats ok:
1. Some of the purchases of equipment & supplies were made from Japan (Personal Credit Cards etc) while others were from the U.K. before and since we set up a U.K. Business Bank account. Do we need to categorize these separately for HMRC do you think?
2. As the display devices are not for sale should they be accounted for as 'Cost of Sales' (COGS), 'Cost of Equipment' or Expenses- 'Reselling Goods (Stock)' or alternatively as Capital Expense / Allowance?
3. For the prototyping device, do you think the components, materials and tools are considered again 'Cost of Sales' (COGS), 'Cost of Equipment' or Expenses- 'Reselling Goods (Stock)'?

We have not started any renting yet so essentially have no sales etc so are not expecting any tax outlay or tax return scenario, so are operating essentially at a loss if that makes any difference.
Apologies for the long-winded thread. I have tried HMRC but they are all scratching their heads and hope there is someone out there who can help. Kindest Regards,
Darren

Return to “Business Tax”