Accountant for Etsy Sellers

Specialist tax and VAT help for Etsy shop owners

Running an Etsy shop is a fantastic way to turn creativity into income—but keeping up with tax, platform fees, and bookkeeping? That part’s not so fun.

At Yorkshire Accountancy, we work with Etsy sellers across the UK—whether you make candles, jewellery, prints, planners, or personalised gifts. As a trusted accountant for Etsy sellers, we’ll help you stay compliant, claim all your business expenses, and take the stress out of your finances.

Selling on multiple platforms? Our e-commerce accountancy services will provide all the support you need.

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Who we work with

We support:

  • Hobby sellers turning pro
  • Side hustlers earning through Etsy, TikTok Shop, and Instagram
  • Full-time Etsy sellers with growing income
  • Sellers scaling across platforms (Shopify, Amazon, etc.)
  • Sole traders and limited companies
  • Product makers, designers, and print-on-demand sellers

If you sell on Etsy—even if just seasonally—we’ll make sure your tax is right, your books are clear, and you keep more of what you earn.

Self-employed Etsy seller tax advice

Once you earn more than £1,000 in a tax year from your Etsy shop, you must register for Self Assessment. And once things take off, your accounting needs go beyond “just keep the receipts.”

Our self-employed Etsy seller tax advice includes:

  • Registering with HMRC and choosing the right structure (sole trader or Ltd)
  • Tracking Etsy payments, refunds and fees (including currency conversion)
  • Recording shipping income and postage costs separately
  • Avoiding common VAT mistakes on international sales
  • Planning for income tax and National Insurance
  • Reviewing when to switch to Ltd for better tax efficiency

We’ll explain everything clearly and offer proactive advice year-round—not just when it’s time to file.

What expenses can Etsy sellers claim?

Your tax bill depends on your profit—not your sales. So claiming everything you’re entitled to is essential.

Claimable expenses include:

  • Etsy fees (listing, transaction, processing, offsite ads)
  • Postage, packaging, boxes and mailers
  • Materials and supplies (paper, wax, fabric, beads, vinyl, etc.)
  • Design tools, mock-up apps and photo editing software
  • Product photography, branding and logos
  • Advertising (Meta, Pinterest, Google, influencer campaigns)
  • Home office use (if you pack or make products at home)
  • Phone, broadband and bank fees (business portion)
  • Printing and stationery for product inserts or cards
  • Insurance (public/product liability or stock cover)

Often-missed claims:

  • Etsy Plus subscription fees
  • Canva, Adobe, or design app subscriptions
  • Cleaning costs if your home doubles as a workspace
  • Test orders or samples
  • Training courses on SEO, Etsy success or photography
  • Transaction fees from Stripe, SumUp, PayPal or Shopify add-ons
  • Business portion of energy bills if using equipment like heat presses or sewing machines

We’ll help you build a simple record system and review your claims line-by-line before filing.

Should Etsy sellers go limited?

If your profits are growing, you might save tax by setting up a limited company—but it’s not always a no-brainer.

We’ll walk you through:

  • What you’ll actually save (based on real numbers)
  • What changes with your income, dividends and bookkeeping
  • Whether you can keep selling under the same shop name
  • How it impacts your Etsy payout structure
  • What happens if you also sell on Shopify or Amazon

If incorporation makes sense, we’ll handle the setup, switch your accounting over, and support you going forward.

Do Etsy sellers need to register for VAT?

Yes, sometimes.

Here’s what you need to know:

  • If your UK turnover exceeds £90,000/year, VAT registration is mandatory
  • Etsy platform fees (charged from Ireland) incur reverse charge VAT—even if you’re not registered
  • Selling to EU customers might require One Stop Shop (OSS) registration
  • Digital product sales may be subject to different VAT treatment
  • Print-on-demand sellers using platforms like Printful may face import VAT

VAT is complex for Etsy sellers—but we’ll make it simple and tell you exactly what you do and don’t need to do.

Making Tax Digital & Etsy bookkeeping

If your Etsy profits exceed £50,000 (and eventually £30,000), you’ll need to comply with Making Tax Digital.

That means:

  • Digital record keeping
  • Quarterly tax updates via MTD-approved software
  • A final annual digital return

We’ll help you stay compliant and even offer a free QuickBooks licence + training session for new clients (offer valid March 2025).

We also help sellers using:

  • A2X or Link My Books
  • Craftybase, Bookkeep or GoSimple

Shopify plug-ins linked to Etsy

Why Etsy sellers choose us

We’re not a faceless firm or a TikTok trend. We’re qualified accountants who understand how Etsy works.

  • Fixed monthly fees
  • Support from people who’ve helped real Etsy sellers scale
  • Advice that fits your stage—from hobbyist to full-time
  • Fast support by phone, WhatsApp or email

Help with tax, VAT, expenses, MTD and scaling

Let’s make tax one less thing to worry about

Running an Etsy business should be creative—not chaotic. We’ll keep your finances under control and your tax sorted, while you focus on growing your shop.

Book a free, no-pressure chat with an accountant who knows Etsy inside and out.

Contact Us

Please call or email to arrange your FREE consultation for any of our services.

Meet the Team

We’re a modern, friendly and proactive accountancy service.

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