Self-employed tax help for online sellers

At the self assessment helper, we make filing your self assessment easy and straightforward. For just £9.99, you can fill out our simple questionnaire and receive your personalised, step-by-step guide on how to complete your self assessment, tailored to your unique tax situation. In this guide, we’ll walk you through the key points you need to know about self-employed tax help for online sellers.

Understanding your tax obligations as an online seller

As an online seller, you are considered self-employed by HMRC, meaning you are responsible for reporting your income and paying taxes on your earnings. Here’s a breakdown of what you need to know:

Income tax

You’ll need to report all your income from online sales as part of your self-assessment tax return. This includes all sales, whether through third-party platforms or your own site.

National insurance contributions (NICs)

As a self-employed individual, you’re also required to pay National Insurance Contributions. For online sellers, this typically includes:

• Class 2 NICs: Paid if your profits are over £12,570 per year.

• Class 4 NICs: Paid if your profits are over £9,880 per year (as of the 2023/24 tax year).

VAT registration

If your turnover exceeds £85,000 in a 12-month period, you must register for VAT. This means you’ll need to charge VAT on your sales and submit VAT returns.

Claiming business expenses

One of the benefits of being self-employed is that you can deduct certain business expenses from your taxable income, reducing your overall tax liability. Here are some common expenses online sellers can claim:

Cost of goods sold

This includes the cost of purchasing the products you sell, including shipping costs to get the items to you.

Shipping and delivery costs

You can claim the costs of shipping products to customers, including packaging and postage.

Home office expenses

If you run your online selling business from home, you can claim a portion of your home expenses, such as electricity, heating, and internet.

Website and platform fees

Fees charged by platforms like eBay or Etsy, as well as costs for maintaining your own website, are deductible.

Marketing and advertising

Any money spent on promoting your online store, including social media ads, Google Ads, or influencer marketing, can be deducted.

Managing your records

Good record-keeping is essential for any self-employed individual. As an online seller, you should keep records of:

• All sales: Maintain detailed records of all sales, including dates, amounts, and customer details.

• Expenses: Keep receipts and invoices for all business-related expenses.

• Bank statements: Ensure you have records of all transactions related to your business, especially if you have a dedicated business bank account.

• VAT records: If registered for VAT, keep detailed records of VAT charged and paid.

Keeping accurate records will make it easier to fill out your self-assessment and can also be crucial if HMRC ever requests an audit.

Important deadlines

Missing deadlines can result in fines and penalties, so it’s important to stay on top of your tax obligations:

• Registering as self-employed: You must register with HMRC as self-employed by 5th October in your business's second tax year.

• Filing your self assessment: The deadline for online submissions is 31 January following the end of the tax year.

• Paying tax: Any tax owed must be paid by 31 January. Payments on account (advance payments towards your next year’s tax bill) may also be required by 31 January and 31 July.

How can we simplify your tax filing

Filing your self-assessment doesn’t have to be overwhelming. At the self assessment helper, we’ve created a service tailored to online sellers like you. By answering a few simple questions, you’ll receive a personalised, step-by-step guide on how to fill out your self-assessment, making the entire process stress-free.

For just £9.99, you can:

• Ensure compliance: Our guide helps you meet all HMRC requirements, so you avoid costly fines.

• Maximise deductions: We help identify all possible deductions to minimize your tax liability.

• Save time: With our easy-to-follow guide, you’ll spend less time on paperwork and more time growing your online business.

Navigating self-employed taxes as an online seller doesn’t have to be daunting. By understanding your obligations, keeping accurate records, and claiming the right expenses, you can ensure you’re paying the correct amount of tax—no more, no less. And with the help of the self assessment helper, the entire process can be simplified, giving you peace of mind and letting you focus on what you do best: selling online.

Ready to get started? Take the first step toward hassle-free tax filing today!