Department store charges interest to its customers on store credit cards.
Would this be non trade credit (D111) or just trading income?
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I'd treat it as trading income...
... but come a loss-making period, I'm sure HMRC would disagree with me.
Since there isn't a separate finance company, I assume it's a single department store, rather than a national chain.
That being the case, the credit card holders are probably just the modern day equivalent of its "account" customers. On that basis I'd argue that it is a party to the loan relationship in the course of activities integral to its trade (they're tantamount to trade debtors).
I'm sure HMRC will have a different view and go all British Nuclear Electric over it. the case is a good read if you need to know about back-end decommissioning costs, but it's got naff all to do with loan relationships. I had to concede on a slightly different argument because the Inspector advised me that if it did go to tribunal, HMRC would take it all the way (through the courts). But I'm not bitter!