How much do I declare as income when selling on Amazon

Taxnoobuk

Hello

I'm really confused on how much I declare as income when selling online.

For example if I turned over 70k a year on Amazon UK but after their fees I only see 24k a year of that actually hit my bank account would I declare my turnover as 70k or would I declare it as 24k as that's what actually hits my account?

Also would the answer change depending on if i was a sole trader or a limited company?

Pennywise

You always declare turnover/sales before costs, so you declare:

Turnover £70
Costs £46
Profit £24

Obviously any other costs you have would be added to the £46.

Exactly the same whether you're a sole trader or limited company.

agrinnall

If you're really turning over £70K and you are as clueless about tax as you sound I would strongly suggest that you engage an accountant as soon as possible.

tacpot12

agrinnall wrote: »

If you're really turning over £70K and you are as clueless about tax as you sound I would strongly suggest that you engage an accountant as soon as possible.

Agreed. It is highly likely that an accountant will save you more money that they cost at that level of turnover & profit.

MDMD

Pennywise wrote: »

You always declare turnover/sales before costs, so you declare:

Turnover £70
Costs £46
Profit £24

Obviously any other costs you have would be added to the £46.

Exactly the same whether you're a sole trader or limited company.

Not always, if you are a sole trader you can choose between cash basis and accruals. A limited co must use accruals basis. Might not make any difference to the actual figures.

https://www.gov.uk/simpler-income-tax-cash-basis/who-can-use-cash-basis

And you may need to register for VAT if not already doing this as that’s based on turnover. Depends on what exactly you are selling though....