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Stock (Goods for resale)

Any item which you purchase with the ultimate plan to sell on is classed as Stock. These can include:

  • Recipe Books
  • Motivational Items (e.g. Member Dairies)

 

Note: Magazines and Biscuit bars are not classed as stock as you do not ‘physically’ purchase these. Instead, they’re provided on a ‘sale or return’ basis. The amount you receive for each sale is classed as ‘commission’ and comes under your income.

If you do not return Magazines and are invoiced for these at a later point at full price, this can be an expense.

 

Recipe Books / Motivational Items

It is likely that you’ll be purchasing Recipe Books from Slimming World. These are then sold at a slightly different price, and the difference is not ‘commission’ but ‘profit’.

This is because you purchased the item at a lower cost, and then sold at the higher amount.

The difference is your profit, and is taxable.

It is recommended to keep up to date stock sheets to track purchases of books and selling amounts to keep your records up to date. Check the ‘Record Keeping’ section of this guide for more information.

 

eShop purchases

Not all eShop purchases may be classed as stock (e.g. visuals are a business expense), but keep copies of emailed receipts to allow you to categorise the stock purchases from the expenses.

Updated on September 19, 2017

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