Did you have purchases and other costs?
No |
Go to Part C. |
Yes |
Read on. |
You need to know
This represents the direct cost of materials used for manufacture, sale or exchange in deriving the gross proceeds or earnings of the business. It includes inwards freight. It also includes the cost of stock acquired when starting or acquiring a business during the year. It may also include some costs for labour and services provided under contract if these are recorded in the cost of sales account in your business books of account. If so, do not also include this amount as Contractor, sub-contractor and commission expenses.
Step 1 |
Work out the value of your primary production purchases and other costs directly related to trading stock. If you have more than one business, add up all your primary production purchases and costs. |
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Step 2 |
Write the total value of your primary production purchases and other costs directly related to trading stock at Purchases and other costs, Primary production column, item P8 on your schedule. Do not show cents. |
Step 3 |
Work out the value of your non-primary production purchases and other costs directly related to trading stock. If you have more than one business, add up all your non-primary production purchases and other costs. |
Step 4 |
Write the total value of your non-primary production purchases and other costs directly related to trading stock at Purchases and other costs, Non-primary production column, item P8 on your schedule. Do not show cents. |
Step 5 |
Add up your primary production and non-primary production purchases and other costs directly related to trading stock and write the total value at L item P8 on your schedule. |
Note: STS taxpayers – only show purchases and other costs that you have paid.