WASTE???

WASTE???

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A very silly question but I have a client who has purchased  raw material worth £16,000

He has a high level of waste and that has been valued at £5800

Is waste an allowable deduction???  and where would this appear ?

Replies (3)

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By rjoconnor81
09th Apr 2015 09:34

Already ready deducted

You are already allowing for the waste element, because you will be putting £16k through the P&L,not just the £5,800.

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Stepurhan
By stepurhan
09th Apr 2015 09:35

Deduction for what?

He has spent £16,000 on raw material. He will get saleable items from £10,200 of that material (the amount after waste). The £5,800 waste is already accounted for in the original purchase. You can't claim it twice.

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By MJ-
09th Apr 2015 09:38

thanks

Thanks it did seem like i would be accounting for it twice.

 

I think its the Easter weekend that has given me a blank moment    

 

Much appricated guys

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