Online accountants for etsy sellers
Transforming handmade and vintage business finances with specialised guidance.
Certified with the tools you already run on
A generalist keeps you compliant. A specialist keeps you ahead.
We already know where etsy sellers win and lose money, so the planning happens before the deadline, not after.
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HMRC already has your Etsy numbers
Under the UK digital-platform reporting rules, Etsy reports your gross annual sales, transaction count and payout bank details to HMRC for any seller crossing roughly 30 sales or about £1,700 (€2,000) in a year. HMRC cross-checks that against your Self Assessment, and a mismatch triggers an automated 'nudge' letter. We make sure the figure you declare reconciles to the figure Etsy sent, before the letter arrives, not after.
Your taxable income isn't your Etsy payout
The number Etsy deposits is already net of fees, advertising, shipping labels and VAT it collected on your behalf. Declaring just the payout understates your gross turnover and overstates the tax you owe on it, or hides a VAT-threshold problem. We rebuild the full picture from your Etsy CSV: gross sales, then every deductible cost, so you pay tax on real profit, not on a payout figure.
Digital downloads have no VAT safety net
Sell a printable, pattern or template and Etsy is the 'deemed supplier', it charges and remits the VAT itself, with no small-seller exemption. That's usually good news, but it changes how the sale appears in your records and can mask whether your other (physical) sales are nearing the £90,000 VAT threshold. We separate the two streams so you never misjudge where you stand.
The trading allowance can wipe out a side hustle
If your gross Etsy income is £1,000 or less in a tax year, the trading allowance means you owe nothing and may not even need to register. Just over it, and you can deduct the flat £1,000 instead of itemising costs when that's better for you. We work out which side of the line you're on and which method leaves more in your pocket.
What working with us actually covers
Each line is somewhere a generalist usually leaves money behind. For us it is standard, never an add-on.
- 01
Hobby or business? The badges of trade
Knitting a few scarves a year is a hobby; buying yarn in bulk, listing weekly and reinvesting profit is a trade. HMRC applies the nine 'badges of trade', frequency, profit motive, how you source and market, not a single magic number. We assess where you sit, register you as a sole trader when you cross into trading, and stop you either over-declaring a genuine hobby or under-declaring a real business.
- 02
Reverse charge on Etsy's seller fees
If you give Etsy your UK VAT number, it stops charging VAT on listing, transaction and Etsy Ads fees and applies the reverse charge, meaning you account for both the output and input VAT on your return (usually net-neutral). Miss this and your VAT return is wrong. If you're not VAT-registered, Etsy charges VAT on its fees and you simply treat it as a cost. We handle both correctly.
- 03
VAT on imported supplies and the £135 rule
For goods sold to UK buyers in consignments of £135 or less, Etsy collects UK VAT at checkout and remits it, you don't. Above £135, or for your own imported materials, different rules bite. We map which of your sales Etsy has already VAT-handled versus which land on you, so nothing is double-counted or missed when you do register for VAT.
- 04
Selling to the EU and OSS
For your B2C sales into the EU, Etsy often acts as deemed supplier and deals with the VAT, but not in every scenario, and if you ever ship from EU stock or breach distance-selling rules, OSS/IOSS registration can be triggered. We check whether Etsy has you covered or whether you have an underlying reporting obligation, so a growing international shop doesn't quietly create a foreign VAT liability.
- 05
Materials, tools and the home studio
Your real deductions are bigger than sellers think: raw materials and packaging, a share of household bills under simplified or apportioned home-working, equipment via the £1,000,000 Annual Investment Allowance, courier costs net of what Etsy already deducted, and 55p per mile (first 10,000) for craft-fair and post-office runs. We capture the lot so your profit, and your tax, is as low as legitimately possible.
- 06
MTD for Income Tax is coming to you
Making Tax Digital for Income Tax means quarterly digital updates once your gross self-employment and property income passes the thresholds, over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028. A busy Etsy shop hits these faster than expected. We get your Etsy data flowing into Xero, QuickBooks, FreeAgent or Sage now, so the switch is a non-event.
From first call to filed
Four steps, one named accountant, no jargon. Most etsy sellers are fully set up inside a week.
- 01
Discovery
Understanding your business needs.
- 02
Solution Design
Crafting your custom accounting strategy.
- 03
Onboarding
Quick and easy integration.
- 04
Regular Rhythm
Consistent monitoring and reporting.
Guides for etsy sellers
Plain-English explainers, kept current with the latest HMRC rules.
Questions etsy sellers ask us
If your gross Etsy income (before fees and costs) is more than £1,000 in a tax year, yes, you must register for Self Assessment and report it. Under £1,000 the trading allowance usually covers you. Either way, remember Etsy now reports your sales figures directly to HMRC, so it pays to match what you declare to what Etsy sent.
No. Etsy's payout is already net of fees, ads, shipping and any VAT it collected. For tax you declare your gross sales and then deduct allowable costs yourself. We rebuild this from your Etsy CSV so your return reflects true profit, not the deposited amount.
Only once your taxable turnover passes £90,000 in any rolling 12 months (you can deregister below £88,000). Sales where Etsy is the deemed supplier, most digital downloads and many low-value goods, are handled by Etsy, but you still need to track your own taxable turnover carefully. We monitor the threshold for you.
If you haven't given Etsy a UK VAT number, it treats you as a consumer and adds VAT to its fees, that's simply a business cost. Once you're VAT-registered and supply your number, Etsy applies the reverse charge instead, which you account for on your return. We set this up and report it correctly.
Generally no. Etsy is treated as the deemed supplier for digital items, so it charges and remits the VAT for you regardless of your size, there's no small-seller exemption to rely on. You receive your listed price less any VAT Etsy collected. We record these separately from your physical sales so your VAT position stays clear.
Raw materials, packaging and postage (net of what Etsy deducted), Etsy and payment fees, a portion of home and broadband costs for your studio, equipment under the Annual Investment Allowance, and 55p per mile for the first 10,000 business miles to fairs and the post office. If your costs are tiny, the flat £1,000 trading allowance may beat itemising, we check both.
Fixed monthly pricing from £99, £199 or £499 depending on your shop's size, rolling monthly, no lock-in, with a 30-day money-back guarantee. You get a named, ACCA-qualified accountant, replies within 72 hours, and we work in Xero, QuickBooks, FreeAgent or Sage with your Etsy data flowing straight in.
Stop overpaying tax. Start filing in 5 days.
Thirty minutes with an ACCA-qualified accountant. Most owners uncover £1,000-£3,000 in annual savings on the first call. If we are not the right fit, you walk away with a free tax review on the house.
