---
title: Stock (Goods for resale)
description: "When selling products to members, it's important to understand that different items are treated differently in your accounts. Some items are **stock** (which you buy and sell), while others are **commission-based** (where you're simply collecting money on behalf of Slimming…"
url: "https://malgrabooks.co.uk/docs/stock-goods-for-resale/"
updated: "2026-02-18"
category: Expenses
---

# Stock (Goods for resale)

When selling products to members, it's important to understand that different items are treated differently in your accounts. Some items are **stock** (which you buy and sell), while others are **commission-based** (where you're simply collecting money on behalf of Slimming World).

## Stock Items - Recipe Books & Motivational Items

Any item which you **purchase** with the plan to sell on is classed as stock. These include:

- Recipe Books
- Motivational Items (e.g. Member Diaries)
- Promotional Items (e.g. T-shirts, notepads)

Because you're buying these items at one price and selling them at another, you need to record **both** transactions:

- The **purchase price** is an **expense**
- The **selling price** is **income**

The difference between the two is your profit, and it's taxable.

> **Example**
>
>
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> Emma buys a book from the eShop for £4.50 and sells it to a member for £4.95.
>
>
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> - £4.50 is logged as an **expense**
> - £4.95 is logged as **income**
>
>
>
> Her accounts would calculate the profit: **45p**

**Record keeping tips:**

- You don't need to list every individual item - if you purchase 10 books at £4.50 each, you can record a single expense of £45.00 with the eShop order reference
- Keep copies of order confirmations and receipts to evidence what was purchased
- Consider maintaining a stock sheet to track purchases and sales in group, or use an electronic software option

### Gift Vouchers

Gift vouchers are treated as **stock**, not commission. When a member asks you to purchase a gift voucher on their behalf, you're buying an item and providing it to them - there's no formal agency arrangement with Slimming World for this transaction.

This means the money received from the member is **income**, and the voucher purchase is an **expense**. Even though the profit is zero, both transactions form part of your accounts and count towards your turnover.

For more details, see our dedicated article: [Gift Vouchers](https://tax.malgrabooks.co.uk/knowledge-base/gift-vouchers)

## Commission Items - HiFi Bars & Magazines

HiFi bars and magazines work completely differently. You **do not** purchase these items - they're provided by Slimming World on a **sale or return** basis. This means:

- Slimming World owns the stock
- You sell on their behalf
- You keep a fixed commission per item
- The remaining money belongs to Slimming World

Because you're acting as an **agent** for Slimming World, only your **commission** counts as income - not the full selling price.

> **Example**
>
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> Sarah sells a HiFi bar to a member for £1.95.
>
>
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> - She keeps **10p** as commission
> - She passes **£1.85** back to Slimming World
>
>
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> **Only the 10p is recorded as income.** The £1.85 is not her money - it's Slimming World's money that passed through her hands.

This information (called 'Stock Commission') is obtained from Plan for Success documents and is entered into Pulse in the normal way.

### **What about magazines?**

The same principle applies. If you sell a magazine and keep a commission, only the commission is your income. If you don't return unsold magazines and are later invoiced for them at full price, that invoice becomes an expense.

### **Why does this matter?**

Recording only your commission (rather than the full selling price) means:

- Your accounts accurately reflect your actual earnings
- Your turnover figure is correct for tax purposes
- If you're VAT registered or approaching the threshold, only the commission counts towards your VAT turnover

## eShop Purchases

Not all eShop purchases are stock. Items like visuals, banners, and promotional materials for your group are **business expenses** - you're not reselling them.

Keep copies of your emailed receipts so you can categorise each purchase correctly:

- Items for resale → Stock (expense when purchased, income when sold)
- Items for your business use → Business expense

## What if I use a card machine?

If a member pays for a HiFi bar by card, the full £1.95 goes into your bank account. You then transfer the £1.85 to Slimming World separately.

**This doesn't change anything.** The £1.85 was never your money - it was Slimming World's money that happened to pass through your bank account.

## HMRC Guidance

The principle that agents only record commission (not the full transaction value) is supported by HMRC guidance:

- **HMRC Business Profits Toolkit** states that "when ancillary income is received in the form of commission payments... the net amount of the commission received should be included as a receipt"
- **VAT Notice 700, Section 22** confirms that a disclosed agent "stands back from the transaction" and the supply "is not part of his turnover"
- **HMRC Manual VTAXPER37950** explains that under UK law, when an agent is involved, "the supply remains between the person actually providing the goods or services and the person receiving them"

**References:**

- [HMRC Business Profits Toolkit (PDF)](https://assets.publishing.service.gov.uk/media/5b2917da40f0b634d557b065/Business-toolkit.pdf)
- [VAT Notice 700 - Section 22: Supplies made by or through agents](https://www.gov.uk/guidance/vat-guide-notice-700#section22)
- [HMRC Internal Manual VTAXPER37950](https://www.gov.uk/hmrc-internal-manuals/vat-taxable-person/vtaxper37950)