Accountants for TikTok Shop Sellers

Registration is required when taxable turnover in the last 12 months exceeds £90,000, or if you expect to exceed it in the next 30 days alone. The forward-looking test catches sellers with a sudden spike. Registering late creates VAT on past sales that you may not be able to recover from customers.

Payouts are net of TikTok commission, affiliate fees paid to creators, promotional funding, refunds and shipping adjustments. Turnover is the gross sales value. Fees are costs, and VAT on TikTok's own invoices needs correct treatment depending on the issuing entity.

Affiliate commission is trading income. Products received in return for promotion are payment in kind and taxable at their value. Genuinely unsolicited gifts with no obligation attached generally are not. Track samples and gifted stock so income and stock records are complete.

Under the UK's digital platform reporting rules, platforms report seller identity and income data to HMRC each year. HMRC compares these reports with returns, so reporting gross sales rather than payouts matters. If past income was not declared, a voluntary disclosure is usually better than waiting for an HMRC letter.

A TikTok Shop company files statutory accounts at Companies House, normally nine months after its accounting reference date, and a CT600 within 12 months of the end of its Corporation Tax accounting period. Most smaller companies pay Corporation Tax nine months and one day after the period ends; the main rate is 25%, with the 19% small profits rate up to £50,000 and marginal relief between £50,000 and £250,000.

VAT registration is required once taxable turnover passes £90,000 in a rolling 12 months, or is expected to within 30 days. Paying any salary, including to a director, brings PAYE and Real Time Information reporting, and employing eligible staff brings automatic-enrolment pension duties. The confirmation statement is a separate annual filing.

Thresholds, rates and deadlines reflect the 2026/27 UK position at the content update date. Check current GOV.UK guidance, or ask us, before relying on them for your own company.

We start with a free consultation to understand how you invoice, buy, pay people and get paid. You then receive a written scope and fee before chargeable work begins, covering bookkeeping, VAT, payroll, year-end accounts, CT600 and director Self Assessment as agreed.

Advisory work such as management accounts, cash-flow forecasting, pre-year-end planning or specialist reliefs is quoted separately rather than assumed to be included. Where a question needs specialist legal or tax advice outside our scope, we say so.