Online selling has exploded, and so has HMRC's interest in it. Marketplaces now report seller data to HMRC automatically, so being unsure whether you owe tax is no longer a safe place to be.
We help online sellers of every size, from a weekend side hustle to a full time store, understand exactly what to declare, what to claim and how to keep it simple.
The tax challenges online sellers face
- Marketplaces such as eBay, Etsy and Vinted now reporting seller data to HMRC
- Knowing whether you are trading or just selling personal items
- The 1,000 pound trading allowance and when it applies
- Tracking fees, postage, packaging and cost of goods
- Crossing the VAT threshold without realising
What we help with
- Working out whether you need to declare and register
- Your Self Assessment return prepared and filed
- The trading allowance applied where it helps
- Every selling cost reviewed, from fees to postage and stock
- VAT advice as you grow
- Clear records that match the marketplace reports
Common mistakes to avoid
Assuming small online income is invisible to HMRC, when platforms now report it
Forgetting to deduct fees, postage, packaging and the cost of stock
Missing the VAT threshold as sales grow
Mixing personal selling with genuine trading and getting the treatment wrong
Useful tax tips
- If you buy or make things to sell, you are usually trading and should declare it
- Keep a simple record of what you sold, the fees and the cost of the item
- The first 1,000 pounds of trading income may be covered by the trading allowance
- Watch your rolling turnover so VAT registration never catches you out
Example scenario
A side hustle that grew into a business
Someone selling handmade items on Etsy started as a hobby and grew quickly. They were unsure what to declare. We reviewed their sales, applied the trading allowance for the first year, then set up clean records and a simple return as the income grew, so they stayed compliant without overpaying.
Frequently asked questions
Do I have to pay tax on what I sell online?
If you buy or make goods to sell, you are usually trading and need to declare the income. Selling the odd personal item you already owned is different. We will tell you which applies to you.
What is the trading allowance?
The first 1,000 pounds of trading income in a year may be tax free under the trading allowance. We apply it where it leaves you better off.
Will HMRC know about my sales?
Quite possibly. Online marketplaces now report seller data to HMRC, so it is best to get your tax in order.
Do you work with sellers across the UK?
Yes. We work online with sellers nationwide.