Buying second hand good for business use

garvok

Hi All,
I recently took Voluntry redudency from work, and decided to set up as a self employed musician, and music tutor.
I need some equipment to make my life easier in my teaching studio, I have seen a second hand one in the local Ad trader which is a fraction of the price band new. As this is a business expenses my accountant has said keep all receipts etc. But this would be a cash transaction, so how would i fair with claiming this as a business expenses if there is no paper trail? The person said he couldnt give a receipt as when he bought it it was for his hobbie not work.

Where do i stand there, or is it just something I cant claim for?

Thanks
G

Atidi

garvok wrote: »

Hi All,
I recently took Voluntry redudency from work, and decided to set up as a self employed musician, and music tutor.
I need some equipment to make my life easier in my teaching studio, I have seen a second hand one in the local Ad trader which is a fraction of the price band new. As this is a business expenses my accountant has said keep all receipts etc. But this would be a cash transaction, so how would i fair with claiming this as a business expenses if there is no paper trail? The person said he couldnt give a receipt as when he bought it it was for his hobbie not work.

Where do i stand there, or is it just something I cant claim for?

Thanks
G

You want a receipt from the seller, not a receipt the seller got when he obtained it.

If the seller won't give you a receipt, sounds like something real dodgy.

Mistral001

Sounds like a dodgy excuse to me for not wanting to give a receipt.

Start your business the way you wish to continue with it is my motto.

garvok

not so much wont give a recpit, just understandable from his point of view, its not a massive amount, a few hundred pounds worth, all seems pretty legit, just its not like he's selling for business purposes, its just something he wants rid of if that makes sense?

paddyrg

Super cheap and won't give a receipt, could be a knock off. Just be cautious. Anyway in terms of a receipt you just need something handwritten not a fancy printed VAT one. Name and address, amount, date, what for. Job done. If they won't even provide that, be really wary.

googler

garvok wrote: »

not so much wont give a recpit, just understandable from his point of view, its not a massive amount, a few hundred pounds worth, all seems pretty legit, just its not like he's selling for business purposes, its just something he wants rid of if that makes sense?

I don't see why this stops or prevents him from giving you a receipt. It's merely a receipt for the money, not a guarantee. Get the seller to hand-write, or you write or print;

"Received £n.nn, dd/mm/yy from (OP) in full and final payment for (item), sold as seen, with no guarantee stated or implied

Signed, (seller)"

I've used this format when buying and selling via Gumtree. Just tell the seller you're buying for business use and you need evidence of what you spent your money on.

[Deleted User]

garvok wrote: »

not so much wont give a recpit, just understandable from his point of view, its not a massive amount, a few hundred pounds worth, all seems pretty legit, just its not like he's selling for business purposes, its just something he wants rid of if that makes sense?

Oh, I see, I think I get your drift.

So this seller wants it offloaded asap and on the QT. All fully understandable. Nudge, nudge, wink, wink. :cool:

You could always write yourself a made up receipt. I doubt the taxman will ever ask to look at it anyway. Then your accountant could offset this cut price item for its normal full value in your accounts

googler

darkfield wrote: »

Oh, I see, I think I get your drift.

So this seller wants it offloaded asap and on the QT. All fully understandable. Nudge, nudge, wink, wink. :cool:

Are you suggesting that everyone who sells (used) musical instruments on Gumtree or eBay or via AdTrader is up to no good?

[Deleted User]

googler wrote: »

Are you suggesting that everyone who sells (used) musical instruments on Gumtree or eBay is up to no good?

Whatever gave you that idea? Absolutely not.

But this isn't just any gumtree seller is it?

At least with ebay you get some form of receipt/purchase confirmation.

InsideInsurance

I think you may be asking the wrong question, you dont need his purchase receipt, you need him to simply write on a bit of paper, who he is, what he is selling to you and how much he is charging you.

garvok

makes sense, the equipment is legit and nothing wrong with it, it's just for him it's not a business transaction. he has the original recpit to go with it, he didnt say he wouldnt, its just something i wouldnt expect. As a hobby I enjoy mountain biking, if i decided to sell an old bike, i wouldnt expect someone to be asking for a recepit. or in hine sight should t be something i'm declairing as a 'profit' from his point of view and paying tax on it?