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Thread: Scrap Service

  1. #11
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    An additional point - if you receive metal back rather than money, then that still gets declared. Your books should show value for raw materials held as well as stock, so the addition to that will show up.

    You wouldn't believe how much computing power HMRC now has at its disposal - and if they decide you're defrauding the tax payer (with whatever pattern they decide constitutes evidence) then they can shut you down very quickly and with remarkably little judicial oversight.

  2. #12
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    Not so much income tax bods, who have usually been helpful, but the VAT people ...with powers which exceed the police's and which are not subject to half as much control..you don't want to irritate them.
    If there are pieces of paper, there is a paper trail.
    (Mind if they ask about my scrap I re0cycle a lot of it and the rest just sits in a box. Hardly seems worth sending off the silver)
    Author: Pearls A Practical Guide
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  3. #13
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    All part of HMRC, and when IR merged with HMC they ended up with a lot of new power and very few checks and balances.

  4. #14
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    yes. Also includes Border Force who take off me for VAT every time I come back from Hong Kong. But every one of them sucks his teeth and says I've filled in the form wrong when all I do is what I was told to do by the last tooth-sucker last time.
    Author: Pearls A Practical Guide
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  5. #15
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    I am still not convinced that if I send silver off to be refined and then get silver back it should be classed as income. To me its just recycling what I already own.

  6. #16
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    Of course it isn't income, you are paying for a service on materials you already own.

  7. #17
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    If you are selling scrap for cash you receive money, that is income.
    If you send your scrap to be processed and made back into sheet or wire or whatever then it is expenditure -shipping and processing fees of your own silver
    Author: Pearls A Practical Guide
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  8. #18
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    So you send your scrap & get paid however & you then spend it all on new materials/tools..so what?
    Your only going to pay tax on any profit you make, which you probably aren't.
    A few hundred in & a few hundred out = 0
    Plus your receipt for postage will leave you on minus which is good.

    If you want to keep your money gained for something else like Xmas presents then thats abit different.

    It's not rocket science
    Last edited by Gemsetterchris; 21-11-2015 at 02:57 PM.

  9. #19
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    Quote Originally Posted by caroleallen View Post
    I am still not convinced that if I send silver off to be refined and then get silver back it should be classed as income. To me its just recycling what I already own.
    It isn't income - you are PAYING someone to carry out a service for you = expenditure.
    If you are selling your scrap (not sending it off to be refined) then it is income.
    Why is this so difficult to grasp? Your opening post was about SELLING your scrap (not having it refined) - this is INCOME whether you get a cheque or a credit note.
    If you sell some rough wood then it is income. If you send your wood to be planed and made into planks then it is an expense - same principle.



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  10. #20
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    Carole, I would suggest phoning your local tax office (before they get shut down) and asking their advice on the situation. That way you can get the correct answer (or at least the current interpretation of same) rather than any of our interpretations.

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