How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4949
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am a sole trader starting electronics trade-in business.

This answer was rated:
★ ★ ★ ★ ★

Hi - I am a sole trader starting electronics trade-in business. I am not VAT registered. When I purchase a laptop or a phone from seller, what documents should I supply to seller and keep for accounting purposes?
bigduckontax
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. To the seller none whatsoever, but from him obviously the invoice to support your accounts, plus, of course, all the guarantee paper work, instructions etc. This is classed as an item of plant and machinery, the definition is very wide, and is entitled to capital allowances. Under the Annual Investment Allowance (AIA) regime 100% of the cost may be claimed back when you self assess.
Ask Your Own Tax Question
Customer: replied 2 years ago.
Hi - I am not sure that the question was fully understood. My trade-in business buys electronics to sell, not to use by myself. I purchase from a member of general public to sell to another member of general public. Are they still required to generate an invoice for me? Probably not. But a few sellers asked me to any document so they know that they know who they are dealing with and have a paper trail.
Oh, I get it. No, such private sales would not be invoiced, but I would recommend keeping details of your purchases say on a spread sheet to support your accounting function in the unlikely event of an inquiry. Any seller wanting support then I would have thought a written note would suffice. You could have some pro forma examples available for issue when necessary, just having to enter the name, address, item details and the price for the seller's records; a sort of expanded 'With Compliments' slip.
bigduckontax and other Tax Specialists are ready to help you
Ask your own question now
Customer: replied 2 years ago.
This is briliant! Thank you very much
Delighted to have been of assistance. Thank you for your support.
Ask Your Own Tax Question