Customer refunds

[csw]

Hi, to you all

I am now going to deal with my tax return and just wondered where customer refunds stand. I spoke to the tax office this morning and still none the wiser. I am registered on ebay and I've dealt with one full refund of a product that was damaged in post. I put this to expenses. What about part refunding for postage costs. Ex: Customer has bought 3 items and haven't waited for me to send amended invoice, so they have paid maximum postage charges. I part refund for postage discounts. See this time I have added all the refunds for the year and put those down as expenses but I don't think this is right. Please someone out there help me to understand refunds in business accounts!!

Thank you
Cleo

[MyAccountantOnline]

I would show refunds as a debit to sales and credit the postage refunded to postage costs.

At the end of the day as long as your profits are correctly stated where you choose to put the expenses within reason doesnt really matter.

[csw]

Thank you Nicola J for your reply. Your answer has helped and you also have opened my eyes to a mistake in my accounts. Thank you very much indeed. Hope you have a brilliant week! Cleo :)

[MyAccountantOnline]

Thank you Nicola J for your reply. Your answer has helped and you also have opened my eyes to a mistake in my accounts. Thank you very much indeed. Hope you have a brilliant week! Cleo :)

Thank you Cleo - glad it helped:)

[Matt.Barsauckas]

Hi,

I agree with Nicola. But as an adage, make sure you write out to HMRC and request clarification on this.

I have dealt with many hundreds of cases over the years and HMRC always state " you did not clarify this with us", they are reluctant to confirm in writing, but you must keep pressing for a reply and at the very least have a copy letter of your enquiry on file.

Do not accept clarification over the phone..... written only.

The reason being, if x-years down the road you have a visit the officer investigating is only really interested in finding your errors to generate more revenue, so get it sorted at the START..... always.

Regards,

[MyAccountantOnline]

Hi,

I agree with Nicola. But as an adage, make sure you write out to HMRC and request clarification on this.

I have dealt with many hundreds of cases over the years and HMRC always state " you did not clarify this with us", they are reluctant to confirm in writing, but you must keep pressing for a reply and at the very least have a copy letter of your enquiry on file.

Do not accept clarification over the phone..... written only.

The reason being, if x-years down the road you have a visit the officer investigating is only really interested in finding your errors to generate more revenue, so get it sorted at the START..... always.

Regards,

With all due respect I wouldnt bother - I doubt you'll even get a response.

HMRC cant cope with dealing with what they have to at present.

If every tax payer sought clarification on matters such as this the tax system would fall apart.

[Williams lester]

Hi,

I agree with Nicola. But as an adage, make sure you write out to HMRC and request clarification on this.

I have dealt with many hundreds of cases over the years and HMRC always state " you did not clarify this with us", they are reluctant to confirm in writing, but you must keep pressing for a reply and at the very least have a copy letter of your enquiry on file.

Do not accept clarification over the phone..... written only.

The reason being, if x-years down the road you have a visit the officer investigating is only really interested in finding your errors to generate more revenue, so get it sorted at the START..... always.

Regards,

Sounds like a fairly pointless waste of a postage stamp, as the profit will be unchaged what are you atempting to clarify?