Cost of returning parcel back Tax deductible ?

hubb

I am a self employed photographer and have had to return a purchased lens that is faulty. Can I claim back the cost of postage as expense ?

TheCyclingProgrammer

I'd say this would be a tax deductible expense if the original purchase was also tax deductible (which it obviously would be in your case), but I'm pretty sure under consumer law the retailer should cover the cost of returning a faulty item.

hubb

What if the goods delivered by the retailer are faulty? Am I responsible for the cost of taking the goods back?

No. If the goods were delivered to you then it would be reasonable to expect the trader to uplift them at no extra cost to yourself. However, you may have difficulty forcing a trader to pick up faulty goods which he does not want you to reject. You would also be entitled to a refund of any delivery charge if you are rejecting the goods and claiming a refund. If you are accepting a repair or replacement then the retailer has to bear any costs, such as transporting the goods.



Yes, the purchase is tax deductible. I think at this stage I will send the item and email him to let him know how much it cost. If he refuses to offer I can remind him of the above. Either way it isn't too much of a problem if it's tax deductible anyway.

Pennywise

TheCyclingProgrammer wrote: »

I'd say this would be a tax deductible expense if the original purchase was also tax deductible (which it obviously would be in your case), but I'm pretty sure under consumer law the retailer should cover the cost of returning a faulty item.

Unfortunately consumer law doesn't apply to business transactions, so the OP has to rely on whatever contractual terms were agreed upon purchase, with recourse only via court action if necessary.

hubb

Oh well, tax deductible it is then

HappyMJ

hubb wrote: »

Oh well, tax deductible it is then

It is but I'd still be demanding the trader cover the cost of returning the item.

TheCyclingProgrammer

Pennywise wrote: »

Unfortunately consumer law doesn't apply to business transactions, so the OP has to rely on whatever contractual terms were agreed upon purchase, with recourse only via court action if necessary.

The seller doesn't need to know it was a business purchase so no harm in trying to play the consumer law card. Nothing to lose.

OP - tax deductible it might be but that means it's only saving you whatever your marginal rate of tax is on the costs. Out of principle I would be getting the seller to refund return costs.

hubb

I dropped a heavy hint when I informed him I had sent it with a cost in £. he ignored my email. Unfortunately the invoice to me has my company name so he probably knows I am self employed. There is always Trust Pilot if he refuses to pay.

polymaff

hubb wrote: »

I dropped a heavy hint when I informed him I had sent it with a cost in £. he ignored my email. Unfortunately the invoice to me has my company name so he probably knows I am self employed. There is always Trust Pilot if he refuses to pay.

What a muddled set of postings, hubb. If a company made the purchase, then YOU did not. Moreover, whether you are self-employed or not has no relevance to a purchase made by a company, and your status could not be deduced from the fact that the order was placed in a "company name"..

SeniorSam

Sounds like you have not been self employed very long. Your accountant should advise you that all your legitamate business expences can be set agianst income provided you have receipts for each item.

Sam