Declaration of Sales or Services for Artisan?
Hi Valerie,
I am a woodworker, I offer a variety of services from renovation to furniture making. Since I started the business 6 years ago I have been declaring all of the hours I work (labour) as services, and all of the materials (plus a small mark up to cover the 14% tax) as sales.
I spoke recently to a friend who is a fellow artisan and he told me that I should be declaring far more of my work as sales.
I have a workshop in which I build bespoke items such as doors, staircases and furniture, which I then deliver to site and fit for clients. It would seem to make sense to me that the items I make are my products and therefore sales. Perhaps the fitting of these items would then be services? I suppose if I were doing renovation work or freelance (sub-contractor) work on site that may then be considered plain services?
I’ve got a horrible feeling I’ve been doing it wrong all these years and paying more tax than necessary and limiting myself to a lower turnover threshold. May I even be eligible for a rebate?
Could you please offer an opinion and point me in the direction of any relevant information/documents stating the rules that you may be aware of.
Thank-you,
Matt