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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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.
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.