hi - we have a tipping app which allows users to pay a tip to a third party recipient. It works kind of like a marketplace transaction. There is a gross amount which includes the tip and our fee. The tip is then automatically transferred to the third party recipient. The platform we use Stripe levies its own fees which we bear. At the end we have a net amount received, which is the gross amount, less the majority of the amount transferred to the tip recipient, less Stripe's fees = our net fee which is paid to us. Under UK accounting rules, how should we record this - are our gross sales the actual gross transaction amount, or do we net out the payment to the third party, since we are just collecting their income and passing it on, and record our sales as the gross amount less the majority amount passed on to the third party. Stripe's processing fees would then be a cost of sale and the net of all that would be our gross profit.
Many thanks for your help.