What do I need to do if I want to run my online business through Amazon?
What do I need to do if I want to run my online business through Amazon? In the previous article we talked about things you need to consider when choosing a business structure when you are starting your business online. In this article we will talk about what you need to do if you decide to sell specifically through an online marketplace such as Amazon. Create your Seller Account You can sell through your customer account but it is wise to create a business account on amazon if your intention is to sell regularly. This is because if your business expands and you have to change your account to the business account because you will be liable to pay your taxes you will have to wait and the trading is suspended for days and this might affect your business. Understand what audience you will target When you are advertising your product online you have 2 types of audience: B2C customers and B2B customers. B2C customers: When you are selling your product and services to the customers who are the end users. B2B customers: This means that you are selling from your business to another business You should understand that when you are selling on an online marketplace you will be selling to the customers inside and outside the EU. You will have to register for VAT and follow the local VAT rules in the area that you are selling. VAT requirements and registration Where, when and how you have to register for VAT depends on the following: If you are a UK seller selling goods in the UK as a business activity and your business VAT taxable turnover is more than £85 000 a year you have to register for VAT You must also register for VAT in the UK if you are an overseas seller and the online marketplace provides you with the VAT details of the business customer If you are an overseas seller with goods stored in the EU and your total sales to the customers in Northern Island are more than £70 000 a year You can also register your business for VAT if you want to recover import VAT from the goods imported to the UK that will be located in the UK at the point of sale and sold through an online marketplace. HMRC defines you as an overseas seller if you sell goods stored in the UK to the UK customers but your business is not registered in the UK and all the management decisions are made in the UK. Understanding Fulfillment by Amazon When you sign up to sell on amazon by making a seller account you will automatically be enrolled for FBA. Through FBA you just have to send your products to amazon fulfillment centers and they will handle the shipping, returns, customer service etc. you can track your inventory etc through your account. In our next blog we will discuss how we do accounting when selling on amazon. You can hire an accountant to help you simplify all the book keeping, accounts and taxation and help you concentrate on running your business. If you are thinking if you need an accountant or not read one of our blog here If you are looking for an e-commerce accountant contact Taxaccolega, accountants in Croydon, accountants in London and our team of accountants will be happy to help you. Source: https://www.gov.uk/guidance/vat-overseas-businesses-using-an-online-marketplace-to-sell-goods-in-the-uk#online-marketplaces CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
Sole Trader Tax: July Payment on Account Explained
Tax due in July as a sole trader payment on account If you are self-employed running your own business as a sole trader you will have to pay your income tax through a self assessment tax return. For your trading income that will fall in the tax year running from April 2020 to April 2021, the taxes on that income will be due in full on 31 Jan 2022. This means you are not paying at source. In order to make sure that the self-employed are not paying their tax bills in arrears HMRC has a system known as payment on account. You have to make these payments twice a year. You will be making these payments on accounts If your tax bill for a tax year is more than £1000, you won’t have to make these payments if your tax bill is less than £1000 or 80% of your income is taxed at source, for example if you are employed full time at a company. How does it work? Payment on accounts are the advance payments towards your tax bill which is due in Jan the following year. These payments are calculated by HMRC based on your tax liability for the previous year. You pay 50% of the estimated tax liability on 31 Jan and the other 50% of the tax liability on 31 July. The payments on account will therefore mean that the self employed person will end paying 150% of their tax bill in a particular year. These payments on accounts include tax on your trading income and class 4 NI. It will not include any capital gains tax or student loan tax. These taxes are then paid as part of the balancing payment on 31 Jan the following year. This can be best explained with an example below: Claire is a sole trader and her tax liability for the tradings in the tax year 2019- 2020 were £6000. Based on her previous tax bill she will make 2 advance payments of £3000 each. One on 31 Jan 2021 and the second on 31 July 2020. If her actual tax bill for the tax year 2020-2021 comes out to be £7500 then she will have to make the balancing payment of £1500 on 31 Jan 2022 along with the first payment on account of £3750 which is an advance payment towards her tax bill. Claire will have to pay a total of £5250 on 31 Jan 2022. It is therefore important that you understand your tax bills and set your money aside accordingly in order to avoid financial shocks. If you make an underpayment of your taxes you might have to face penalty charges which is an extra cost to your business. If you have a business in which the profits fluctuate or they are fluctuating because of any other reason such as Lockdown you can reduce your payments on account by simply filling in the form and letting HMRC why you want to reduce your payments on account. You cannot simply ask to reduce your payments on account because you cannot afford to pay the tax bill. If you want to sort out your taxes and stay worry free you can contact Taxaccolega at 020 8127 0728 and we will do the numbers for you. We make sure that all your taxes are calculated accurately and all your tax bills paid on time. We are accountants based in Croydon and Surrey and we can help you with the personal taxes as well as corporation taxes and liabilities. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
I have crypto currency. Will I be paying taxes on it?
I have crypto currency Will I be paying taxes on it? How you will be taxed on the cryptocurrency will depend on the nature and use of the crypto asset or the crypto currency as we normally call it. So What are CryptoAssets ? Cryptoassets are not any money or currency but it includes different tokens. All of these tokens work in different ways and they will be taxed differently. These tokens include Exchange tokens for example, bitcoin, utility tokens, security tokens and stable coins. Are you a business or an Individual? Different taxes will apply if the transaction of the crypto asset involves businesses and companies. If you are an individual dealing with crypto assets you will have different taxes that will be applied to you and we have discussed that below. IF YOU ARE AN INDIVIDUAL If you are an individual and you got crypto assets from your employer as a form of non cash payment you will have to pay the following taxes when you receive them: If you have bought cryptocurrency as an individual with the intention of selling it and making profit when the value of the cryptocurrency increases you will have to pay the tax on the disposal of asset. You will be paying tax even if you got the crypto asset from your employer and you sell it subsequently. The tax which is paid on the disposal is: you can report and pay Capital Gains Tax when you realise a gain in your self assessment tax return alternatively you can use Capital Gains Tax real time service to report it straight away. The disposal of an asset includes but not only selling but the exchange of the crypto assets as well. HMRC describes disposal as the following: You will not be considered as making a disposal if you are giving away the cryptocurrency in charity as a donation. In calculating Capital Gains Tax you are allowed to deduct certain expenses which can lower the tax that you will pay on the gain. These expenses include consideration originally paid for the asset, any transaction fees, advertising fees when looking for a purchaser, any professional costs involved this will include any fees paid to an accountant as well, costs of valuations. Calculating Capital Gains tax involves many other considerations and you might want to consult an accountant, we at Taxaccolega have experienced accountants who can calculate your taxes in the most efficient way and save4 you money. If you own crypto assets it will be considered your property and you will have to pay inheritance tax on it. All the rules of inheritance tax will apply as they apply on any property that you own. Other taxes involved can include stamp duty land tax but that only applies when the exchange tokens are given as a consideration for a land transaction. If you own cryptocurrency and you are worried about your taxes, you can seek professional advice at Taxaccolega, accountants based in Croydon, Surrey. Our team of accountants at Taxaccolega can advise you on the taxes that you are liable to pay, calculate the taxes for you and meet the tax deadlines. Please don’t hesitate to call us at 020 8020 8127 and we will be very happy to help you. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *