Multiple users selling through single card reader

[Antique Shop]

As an antiques shop (just started) I am asked if I can rent space to other traders. I can and can report the pitch fee income. However, their sales will all go through my till. Cash sales is ok to manage but it is card sales I’m querying. All will be processed through my merchant account and I then pay then back their sales (noting merchant costs for each sale). How do I legitimately exclude their sales from my accounting for my reporting to HMRC as VAT threshold would likely be triggered if I cannot.

 

[Scalloway]

Do you not record your own sales at the point of sale?

When recording the receipts from the card machine in your books I would put it into a holding account then split it between your own sales and money taken on behalf of others.

 

[NortonBishop]

and make it 100% clear to customers that they are not buying stuff from you.

 

[Graham Tyers]

Make sure all the customers know what name they will see on their bank statement... Or you'll be like chargeback City.

 

[Paul Kelly ICHYB]

Do you use a till or epos?

If yes, each seller has their own 'account'/operator number-name, so you can record who has sold what and then tie the transaction and card sale together.

As mentioned, you need to ensure the buyer knows that you are acting on behalf of the seller.

You also need a specific agreement with the seller to cover things like transaction charges, chargebacks etc.

 

[lesvatadvice]

Make sure the other retailers have signed a document confirming the arrangement; you don't want HMRC thinking they are your sales!

 

[Nico Albrecht]

With the likes of I Zettel and sum up readers for under £30 a pop why even bother with a single card terminal. They can bring their own gear or take cash only.

 

[ecommerce84]

With the likes of I Zettel and sum up readers for under £30 a pop why even bother with a single card terminal. They can bring their own gear or take cash only.

I’m assuming OP will be behind the till and the space they rent will be shelving space or a couple of IKEA Detolf display cabinets, and all of the sales will be going through one till point.

 

[Frank the Insurance guy]

You need to be careful and be clear on who is the contracting party with the buyer.

It could be seen that the buyer is paying you and therefore the contract of sale is with you - on the basis that it is you receiving their money.

I suggest you get some legal advice to protect your position - you do not want to be involved in any disputes between the buyer and seller!

If you have a business insurance policy, have a look as many will include a free legal helpline that you can call on any business related matter - they will give you the legal opinion on this.