Accounting that reconcilesto your marketplace payouts.
Amazon, Shopify, Etsy and eBay all pay out net of fees, refunds and reserves. We rebuild the real sales, VAT and margin behind every settlement, so you know which products actually make money.
What makes your finances different.
Payouts are not sales
A marketplace deposit is sales minus fees, refunds, advertising, shipping and sometimes VAT collected on your behalf. Booking the deposit as revenue understates sales and VAT and hides margin.
VAT in several places
UK VAT, marketplace-collected VAT on imports under £135, the EU One Stop Shop for B2C sales into Europe, and Northern Ireland rules all apply to the same product catalogue.
Stock ties up cash
Profit on paper and cash in the bank diverge when stock is bought months ahead of sale. Cost of sales has to be matched to units sold, not to the purchase date.
Multi-currency everywhere
Selling in dollars and euros, paying suppliers in renminbi and advertising in several currencies creates exchange differences that need recording correctly for tax.
What we do for you.
- Connect Amazon, Shopify, Etsy, eBay and Stripe to Xero or QuickBooks with settlement-level reconciliation
- Record gross sales, fees, refunds and reserves separately so margins are visible
- Register and file UK VAT, and the EU One Stop Shop return where you sell to EU consumers
- Account for stock and cost of sales, with periodic stock counts and valuation
- Handle multi-currency transactions and year-end exchange differences
- Produce monthly reports by channel and product line
- Prepare year-end accounts and Corporation Tax, including capital allowances on equipment
- Advise on when to incorporate, when to register for VAT, and import duty and postponed VAT accounting
The tax rules that matter here.
- VAT threshold and voluntary registration
- Register once UK taxable sales pass £90,000 in a rolling 12 months. Below that, voluntary registration lets you reclaim VAT on stock and advertising, but adds 20% to consumer prices, so the maths depends on your margin.
- Marketplace VAT on imports
- For goods sold to UK consumers from overseas with a consignment value of £135 or less, the online marketplace collects and accounts for the VAT. Sales above that are handled by the seller at import.
- Selling to EU customers
- Goods sent from Great Britain to EU consumers are exports: zero-rated for UK VAT, with import VAT due in the customer's country. The EU's Import One Stop Shop (IOSS) covers consignments up to €150 so customers are not charged on delivery. The €10,000 distance-selling threshold and the OSS Union scheme apply only to goods sent from Northern Ireland.
- Postponed VAT accounting
- VAT-registered importers can declare and recover import VAT on the same return instead of paying it at the border, which protects cash flow on stock purchases.
- Stock and the cash basis
- Businesses using the cash basis deduct stock when paid for. Companies and larger businesses must carry stock at the lower of cost and net realisable value and match it to sales.
Rules and rates are those in force for 2026/27 at the time of writing. Check your own position before acting.
Run your own numbers first.
- VAT calculator
Add VAT to a net price, or strip it out of a gross figure.
- Corporation Tax calculator
Corporation Tax on your profit, including marginal relief.
Worth asking.
Each settlement is broken into its parts: product sales, shipping income, marketplace fees, FBA fees, advertising, refunds, reserves and VAT where Amazon collects it. We use a connector such as A2X or Link My Books so Xero shows gross sales and each cost line, and the deposit reconciles to the bank.
Once your UK taxable sales exceed £90,000 in any 12-month period, yes. Many sellers register earlier to recover VAT on stock and advertising. If you sell to EU consumers you may also need the One Stop Shop scheme, and sales via marketplaces have their own rules.
Yes. The same approach applies to every channel: gross sales, fees and refunds recorded separately and reconciled to the payout. We also connect payment processors such as Stripe, PayPal and Klarna so nothing is missed.
Stock is an asset until it is sold. The cost of units sold is matched against the sales they generate, so a large stock purchase does not create a loss in the month it is bought. We agree a counting and valuation routine that fits your volume.
If you plan to reinvest heavily in stock, often yes: a company can retain profit at 19% to 25% Corporation Tax rather than paying personal rates on everything each year. If you draw all the profit out, it no longer saves tax on 2026/27 rates. Limited liability on product risk is another reason. Our sole trader vs limited company calculator shows the break-even point for your figures.
Monthly sales, fees and margin by channel, with stock, VAT and cash position. We flag products whose fees and returns eat the margin, and advertising spend against revenue, so decisions rest on the real numbers.
The services involved
- Bookkeeping & Cloud AccountingRegular support with records, reconciliation and keeping the books organised.
- VAT ReturnsReview and preparation of VAT returns, based on the agreed service and available records.
- Management Reporting & Cloud AccountingUseful reporting, software setup and training to help you understand and use your information.
- Outsourced Accounting & Finance DepartmentYour whole finance function run from our office: bookkeeping, invoicing, payments, payroll and reporting.
Guides for ecommerce
All articles
VAT & Making Tax Digital
Untangling the Complexity of VAT for UK Small Business Owners
Untangling VAT for UK small business: this guide offers practical advice on VAT schemes, HMRC regulations, and leveraging benefits.
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5 Common VAT Return Mistakes UK Entrepreneurs Make and How to Steer Clear of Them
This article explores common VAT Return Mistakes UK entrepreneurs make, how these errors impact businesses, and strategies to avoid such pitfalls.
Cloud accounting
The World of Cloud-Based Accounting: A Guide for London Businesses
This guide explores everything London-based businesses need to know about cloud accounting, with an emphasis on finding the right Cloud-Based Accountant in Lo