Answers
Do Etsy, eBay and Amazon report my sales to HMRC?, Yes. Digital platforms report seller income and identity details to HMRC each year, and HMRC compares it with what you declared.
Is my platform payout the figure I put on my return?, No. The payout is net of fees, advertising, refunds and reserves. Turnover is gross sales, with each cost shown separately.
How much can I sell online before declaring it?, Individuals get a £1,000 trading allowance. Beyond that the income must be reported, and there is no allowance if you trade through a company.
Is reselling on Vinted or Depop taxable?, Selling your own used possessions is not. Buying or making items to sell at a profit is trading and taxable from the first sale.
When must an online seller register for VAT?, When taxable turnover in any rolling twelve months exceeds £90,000, or you expect to exceed it in the next 30 days alone.
Does the marketplace pay the VAT for me?, For many marketplace sales the platform is treated as the supplier and accounts for VAT. Sales through your own website are always your responsibility.
Do I pay tax on gifted products and PR packages?, If you are obliged to post or promote in return, yes, it is payment in kind, taxable at the value received.
How is YouTube AdSense income treated?, As trading income. It is paid from Ireland, so a VAT-registered creator normally applies the reverse charge on the VAT return.
Should I move my online business into a limited company?, Usually once profits are steady above roughly £30,000 to £40,000, or earlier where you retain profit to buy stock, want limited liability or plan to bring in a partner or investor.
What should a scaling online brand track monthly?, Contribution margin by channel and product, cash tied up in stock and processor holds, runway, and a management pack closed within days of month end.
Do you answer questions before I become a client?, Yes, basic tax questions are free. Computations, filings, VAT registrations, disclosures and written advice are chargeable and quoted before we start.