Tax Question for retrn

[gmcg]

I am a sole trader preparing for my return at the end of the month.During 2007 i did not trade much as i carried out some renovation work for myself but not in my own home but for my use. I spent approx 7-8k doing this job, can i use some of this figure to include in my purchases?? If i can do this it will bring my purchases a good bit over my sales.... what happens in this case?
Also in may of this year i have laser eye surgery which i can also claim for, is it true i can include this in my return for this year also as i am registered as a sole trader?
I appreciate your comments.

Thanks.

 

[secman]

Strictly speaking, the cost of the renovations for own use should be treated as drawings and not purchases. Treating these as purchases and resulting in purchases exceeding sales, with no logical explanation or using stock/WIP to balance it, would most likely invite a revenue audit. Even treating these as stock WIP would be incorrect. Absolute treatment is Drawings.
With regard to laser surgery , MED 1 form to be completed.

Secman