I've got a new client who runs a business mainly through ebay. He sells rather large items so are couriered/collected. However, when he charges P&P these are always quite a bit more that the actual cost - so he is making a profit. How would you reflect this in the account/tax return:
1 - put the total client paid as income - cost + P&P
2 - put income for P&P as a different income stream
The P&P as charged is not really P&P but an extension of the price of the goods sold. (a little like these cases that you see where someothing costs £1 +£32 delivery whereas really the thing was £33 (ish) but they got the listing noticed by the low price (which is why Ebay changed to give the option to show prices inclusive of delivery in the sort order).
As the link to the P&P is rather tenuous I would put the whole lot through as the sale and expense the actual p&p.
kind regards,
Shaun.
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Shaun
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