ebay sa tax return queries, which box for what

cerveza

Few questions please about an ebay sa tax return.

Where does ebay fees go is this in 'other direct cost' or 'advertising costs'.
Same for paypal fees? is this an 'other direct cost' or a 'finance charge'?
Also cost of postage/ packaging, is this an 'other direct cost'?

Also, what the about cost of printing out invoices to go with each purchase is this a 'general admin cost' or a 'direct cost'.

Also I read on these forums I think that each printout can be submitted as a 14p per sheet, rather than working out cost of each sheet or paper, proportion of ink, cost of printer etc. Is this valid?

What about packaging costs is it a case of adding up all packaging costs or can an estimate be made per parcel as each require different amounts of packaging.

Any views or advice would be appreciated.

fengirl_2

Ebay fees are an advertising cost, Paypal fees are finance costs. Postage, packing is a direct cost.
The stationery you use for the business is an admin cost and you should enter the amount you spent on paper, cartridges and other stationery in the year - dont try and work out a cost per sheet! You can add back a proportion for personal use on the SA.
Your packaging costs should be entered in full and you should have kept receipts in case of investigation.
You will find it easier next year if you keep a simple spreadsheet on a month by month basis with all your costs analysed under their different headings, eg stationery, postage, Ebay fees, etc. The you just need to add each month's up and then add each month together to get a grand total.

Toni_Tax

Unless you are making more than 15K you only need to fill out boxes 3.24, 3.25 and 3.26 on page SE1 and therefore would not need to determine the description of each expense and fill out the first part of page SE2.

Assuming you are making more than £15K p/a from Ebay sales, then I would have said they are all direct costs excepting the printing which is general admin. This is open to interpretation and I wouldn't worry to much as the net result will be the same as it won't affect your tax bill.

You should be claiming a proportion of the cost of the printer carteridges, i.e. cost x business use / personal use (as said by fengirl). Although I don't see why a set amout per sheet couldn't be used as long as this amount is 'reasonable', i.e. printer cartridge cost / number of sheets printed per cartridge.

What most importrant with whatever methods you use, and whatever boxes you fill out, is that you are consistent every year.

Hope that helps!