I bought a new phone. Traded-in an old phone. Sold the new phone. Cashback taxable?

[sjohnb]

Hello,

I am a very small sole-trader making £3k or £4k a year selling on e-bay.

I am trying to work out my income for this year, but have a few sticking points. Could anybody advise please?

I bought a couple of new phones and then sold them.

As part of the deal when buying these phones it allowed me to trade-in an old phone to get cashback paid straight in to my account.

The phones I sent back were bought used from e-bay especially to send for trade-in.

Would the cashback be taxable at all?

Thank you!

 

[intheTRADE]

Is this your only income?

 

[sjohnb]

Yes. My partner works and I mostly look after the children with a bit of ebaying on the side.

 

[Scalloway]

The cost of the phones is a business expense and the trade in value received is business income.