E-commerce Tax Calculator. Profit, VAT, structure — answered.
Plug in your monthly revenue, COGS, primary platform and trading status. We model platform fees, VAT, profit, and tell you whether sole trader or limited company nets you more for 2025/26.
Gross before any fees. Use your typical month, not a peak. The model rolls this up to an annual figure to check the £90,000 VAT registration threshold.
Landed cost of inventory as a % of revenue — typical: ecommerce 35–55%, print-on-demand 60%+.
Platform fee assumed: 25.0% of gross revenue.
Software, ads, packaging, freelancers, your salary contribution. Excludes COGS and platform fees.
⚠️ Annual revenue £180K is over the £90K threshold — you should be registered.
- Annual revenue£180,000
- COGS−£81,000
- Platform fees−£45,000
- Other costs−£9,600
- Profit before tax£44,400
Best structure for this profit: Sole trader — see the full comparison below.
Estimates only. Platform-fee assumptions are blended averages — your specific category mix, Offsite Ads opt-in, FBA cubic-foot rate, and currency exposure all swing the numbers. VAT model assumes B2C pricing held flat. A Tax Health Check builds the full picture for your actual books.
Sole trader vs limited vs umbrella — side by side.
Based on £15K/month revenue, 45% COGS, on Amazon FBA.
- Gross profit£44,400
- Income tax−£6,366
- Class 4 NIC−£1,910
- Net to you£36,124
- Director salary (PA)£12,570
- Employer's NIC−£1,136
- Corporation Tax−£5,832
- Dividends drawn£24,862
- Dividend tax−£2,132
- Net to you£35,300
- Assignment rate£44,400
- Employer's NIC + margin−£6,451
- Income tax−£5,076
- Class 1 NIC−£2,030
- Net to you£30,843
On these numbers, Sole trader nets you most (£36,124 / year). Real structure decisions also weigh limited liability, IR35, mortgage applications, and exit plans — book a call for the full picture.