turning points into pounds- taxable?

paulc333

Ok Suppose I set up properly as self employed to buy to sell. Along the way of the buying process I will collect points such as tesco clubcard, nectar, game, etc. Am I right in thinking that when I spend these points it is as if I have paid cash for the item as far as tax is concerned?

I.e I get £40 worth of game reward points on my game card. I buy a game with these points and then sell it on. What is taxable? Is it the entire value of the sale I make as I paid in points? or do the points count as expenses?

Any help greatly appreciated

Paul

Mikeyorks

As you're accumulating the points as part of your business activities .... then you are creating a taxable element.

More precise responses to your specific query if you read the text (and the embedded links) in posts #4 thru #8 in this thread :-

http://forums.moneysavingexpert.com/showthread.html?t=771527&highlight=cashback