For UK Etsy sellers
Etsy Accountants for UK Sellers
Know what is included before you commit
- Reconcile Etsy Payments, bank deposits, fees, refunds and reserves for the periods agreed.
- Include other selling channels and clarify how materials, packaging and stock records are handled.
- Specify Self Assessment, VAT returns or company accounts and tax returns separately.
- Confirm software costs, catch-up work, the fee and any VAT before accepting your quote.
We confirm the fee and scope before work starts. Compare the work included in your quote.
Bookkeeping built around your Etsy shop
Start with your Etsy payment account, sales records and bank statements. A deposit can include several orders after deductions and adjustments. We reconcile the records so that sales, fees and cash received have a clear audit trail.
Separate transaction and payment fees, advertising, refunds and delivery costs using the actual statements and invoices. Fee rates and currency conversions can change, so a current statement is more useful than a fixed percentage copied into a spreadsheet.
For makers, include materials, packaging, unfinished items and completed stock in the discussion. The accounting treatment depends on your structure and method; a sole trader using cash basis does not necessarily record purchases in the same way as a limited company.
If you also sell through Shopify or another marketplace, reconcile each channel and check that an order or payment has not been imported twice. Your accounts should explain the whole business, with channel detail where it is useful.
Tax questions to resolve before filing
The £1,000 trading allowance is based on gross trading income across your trades, subject to eligibility and exceptions. It is not a definition of a hobby or a threshold for profit. Buying or making items to sell can be trading even when the shop is small.
Marketplace-collected VAT or sales tax needs to be identified separately. Etsy collecting tax for an eligible order does not mean it handles all your tax. For qualifying EU imports, Etsy’s own IOSS process may apply; do not assume you must hold a personal IOSS registration to use that marketplace process.
UK VAT registration depends on the applicable rules for the business as a whole. Discuss exports, digital products and overseas stock separately, because the supply chain and product type affect the answer.
An illustrative Etsy reconciliation
From £2,000 of sales to a £1,450 deposit
Illustration only, not a client result or an Etsy fee schedule. Assume a seller who is not VAT registered has £2,000 of sales, £100 of refunds, £250 of fees and £200 still held in reserve. The resulting deposit is £1,450. The £200 reserve remains an amount to reconcile later; it is not another fee. Materials and other business costs still need to be recorded to work out profit.
Understand the records behind the numbers
UK-wide remote support
We support Etsy sellers remotely across the UK. Your shop’s records and requirements determine the scope, wherever you are based.
Common questions about etsy sellers.
Do I need an accountant for a small Etsy shop?
You may be able to manage straightforward records yourself. Support becomes useful when you are unsure about trading status, Self Assessment, VAT, mixed personal costs or multiple channels. We can scope the work around the records and filings you actually need.
Does Etsy reporting my sales to HMRC mean I owe tax?
Reporting and tax liability are different. Whether you need to declare income or pay tax depends on the activity, income, allowances and your circumstances. Keep the platform report and compare it with your own records.
Does Etsy collect all my VAT?
No. Etsy collects tax for certain transactions under marketplace rules. Your own obligations depend on where you are established, where the goods are, the customer and the type of sale. We need the order details before deciding the treatment.
Are Self Assessment and software included in the fee?
Only if they are included in the agreed scope. Ask for the quote to identify bookkeeping, returns, software subscriptions, catch-up periods and VAT on our fee separately.
What should I send for a quote?
Tell us your business structure, approximate monthly order count, other sales channels, VAT status and whether records are up to date. A recent Etsy statement helps define the work; share account records securely once arrangements are agreed.