Your Etsy shop is your craft. Your accounts shouldn't be guesswork.

HMRC's £1,000 trading allowance means you can earn up to £1,000/year tax-free from any side income, including Etsy, no need to register or file. Above that, you must register as self-employed within 3 months of the end of the tax year in which you crossed the threshold. Key test: if you're buying materials specifically to sell, repeat sales regularly, or intend to profit, HMRC considers you trading, not hobbying. Handmade sellers who sell their own used craft projects occasionally aren't usually trading; repeat production for sale is.

We download and reconcile your Etsy payment account CSV statements against your bookkeeping software. Etsy deposits include a mix of listing fees, transaction fees, payment processing fees, Offsite Ads deductions, and VAT collected, we categorise every line so your books match what Etsy actually charged. This means no more guessing what that lump-sum deposit in your bank account actually represents.

We treat your raw materials, packaging, tools, and supplies as proper cost of goods sold, not just general expenses. This means tracking what you spend on materials per product, matching those costs to actual sales, and giving you accurate gross margins per listing. Most generalist accountants lump all materials into a single expense line, which means you never know which products are actually profitable.

Vintage resale is fundamentally different from handmade. You need to track the purchase cost of every item (what you paid at the car boot, estate sale, charity shop, auction, or online marketplace) and match it to the specific sale when it goes, not lump it into a generic "supplies" line. We set up per-item COGS tracking in Xero so every Etsy sale shows real gross profit after the actual cost you paid to source it. We also capture auction fees, travel to sourcing events, and cleaning/restoration costs as deductible expenses most vintage sellers miss.

Yes, if you're VAT-registered and selling eligible goods (second-hand items, works of art, antiques, and collectibles), the VAT Margin Scheme means you only pay VAT on the profit margin between your buy and sell price, not on the full sale value. On a £100 item you bought for £40, you'd pay VAT on the £60 margin (£10) instead of on the full £100 (£20), effectively halving your VAT bill on that sale. It requires detailed stock records under HMRC VAT Notice 718 (invoice number, purchase price, sale price, margin per item). We set this up in Xero, maintain the records, and run the margin calculations each quarter so you get the saving without the admin. Not eligible: new handmade items, digital products, anything bought from a VAT-registered seller with a standard VAT invoice.

Digital products sold to EU consumers are subject to VAT at the buyer's country rate under the OSS (One-Stop Shop) rules. IOSS applies to physical goods imported to the EU under €150, digital products and services fall under OSS instead. Etsy collects and remits this VAT on your behalf for most EU sales, but you still need to account for it correctly in your books. For UK domestic digital sales, standard VAT rules apply once you're VAT-registered. We handle all of this, including MTD-compliant digital submissions through Xero, so you don't risk HMRC penalties.

Etsy automatically enrols sellers who have earned $10,000 or more in trailing 12-month revenue into Offsite Ads. Once enrolled at this level, the programme is mandatory and charges a 15% fee on any sale that comes from an Offsite Ad click. Most accountants don't even know this programme exists. We track every Offsite Ads deduction, reconcile it against your sales, and show you the true cost of acquisition so you can price accordingly.

Absolutely. We handle mid-year transitions regularly. We'll contact your previous accountant, transfer all records, and reconstruct your year-to-date figures so there are no gaps. The entire handover process takes about a week and requires less than 15 minutes of your time.

Our Tax Health Check for Etsy sellers covers five areas: an Etsy VAT Recovery Scan to identify unclaimed VAT on fees and supplies; a COGS & Materials Audit to check if your costs are tracked correctly; an Offsite Ads Fee Analysis to reveal the true cost of the programme; a Structure Review to determine if sole trader or limited company is more tax-efficient for you; and a Deadline Check to ensure you're not at risk of penalties.

Yes. We offer a 30-day money-back guarantee on all our accounting packages. If you're not satisfied with our service within the first 30 days, we'll refund your first month's fee in full, no questions asked.