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Stop Paying Tax on Stock You'll Never Sell

 The Problem You Didn't Know You Had

Your warehouse is sitting on dead inventory, and you're unnecessarily inflating your taxable profit because of it.

What HMRC Actually AllowsStock must be valued at the lower of cost or realisable value. Here's the key:
  • Damaged goods = zero value
  • Genuinely unsellable items = zero value
  • That write-down = immediate expense on your books


The Tax SavingA business with £20,000 of dead stock can save £5,000 in Corporation Tax (at 25% rate) by correctly writing it down.

How to Do It Right
  1. List all obsolete items
  2. Document why they're unsellable (photos, sales history)
  3. Have your accountant process the write-down before year-end


This isn't creative accounting; it's smart, legitimate tax planning that directly reduces your taxable profit and puts cash back in your pocket.Dead inventory sitting around? It's time for a conversation with your accountant.

Watch our quick breakdown on reducing taxable profit through inventory write-downs:
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