Etsy accountant UK
NDCA works with UK Etsy sellers, from craft makers running a shop alongside a job to full-time traders shipping hundreds of orders a month.
In short: NDCA is an ACCA-regulated accountancy practice for UK Etsy sellers. We reconcile Etsy Payments deposits, fees and Offsite Ads, handle VAT and prepare your Self Assessment or limited company accounts, so you can focus on making and selling. Your agreed services are covered by one fixed monthly fee.
What NDCA clients say
Verified Google reviews from NDCA clients.
In short: NDCA is an ACCA-regulated accountancy practice for UK Etsy sellers. We reconcile Etsy Payments deposits, fees and Offsite Ads, handle VAT and prepare your Self Assessment or limited company accounts, so you can focus on making and selling. Your agreed services are covered by one fixed monthly fee.
How Etsy sellers get paid
Etsy Payments settlements
Etsy pays sellers through Etsy Payments, batching sales into deposits after deducting its own fees, so your bank balance is not the gross sale value. We reconcile each deposit against your sales, fees, refunds and payouts.
Etsy fees
Listing fees, transaction fees, payment processing fees and Offsite Ads are all deducted before payout, adding up fast across hundreds of listings. We build these into your bookkeeping.
Handmade, vintage and craft supplies
Whether you sell handmade products, vintage items or craft supplies, we track stock and finished products so your margins are based on real figures, not guesswork.
Digital downloads
Digital downloads can have different VAT treatment from physical goods, especially for customers outside the UK. The correct treatment depends on the customer, the place of supply and the product itself.
Print-on-demand
If you use a print-on-demand supplier, we account for the revenue, platform fees and production costs separately so you can see your actual margin.
If you also sell on Amazon or Shopify, we bring every channel into one set of accounts. See our wider e-commerce accountant hub if you trade across several platforms.
Tax and VAT for Etsy sellers
Hobby or trading
We start by establishing whether your Etsy activity amounts to a trade, not just whether you sell regularly. HMRC looks at your intention to profit, how organised the selling is and whether goods are bought or made for resale. The £1,000 trading allowance covers you only if your total trading sales for the year are £1,000 or less. Above that, swapping your actual costs for a flat £1,000 deduction rarely helps a seller with real stock and fees.
VAT registration
VAT registration is generally required once taxable turnover exceeds £90,000 in a rolling 12-month period, or is expected to. The rules depend on your supplies, including overseas sales, physical versus digital products and other sales channels.
Selling to EU customers
Selling to EU customers can create additional VAT considerations. Schemes such as the EU One Stop Shop may simplify reporting, which we assess and handle where it applies.
Stock and cost of goods sold
Materials, work in progress, finished products and packaging all need tracking to know your true profit, whether you hold stock or work made-to-order.
Sole trader or limited company
There is no fixed profit level at which becoming a limited company automatically makes sense. The right structure depends on your profits, personal income needs, other income, how much you plan to leave in the business and your longer-term plans. We compare the options using your actual figures.
We also handle your VAT returns, bookkeeping, annual accounts and Corporation Tax.
How NDCA works
You get a named accountant who understands how your Etsy shop operates, from Etsy Payments and platform fees to stock, VAT and your wider finances. You pay one fixed monthly fee with no surprise bills, and your numbers stay current in Xero. We are ACCA-regulated and normally answer the same day.
The software we use: Xero and Link My Books
We use Xero as the core bookkeeping platform, paired with Link My Books to pull in your Etsy Payments deposits and break each one into sales, fees and refunds. This gives you an accurate, up-to-date picture without hours of manual reconciliation, reviewed by your accountant each month. We also use Apron to capture your receipts and supplier bills and send them into Xero.
Etsy accountants across the UK
NDCA works remotely with clients across the country, wherever your business is based.
Etsy fees and payouts a mess?
Etsy fees, refunds and payouts all reconciled properly, every time.
Reviews
Discover why businesses trust us for dependable accounting services and practical financial advice.
What NDCA clients say
We work with businesses across the UK and beyond, delivering results that speak for themselves. Browse our reviews to see the impact we have made, and if you have worked with us, we would love for you to leave a review on Google
Switching to NDCA
You approve the engagement, and NDCA contacts your existing accountant for professional clearance. We collect your records, set up or transfer Xero and Link My Books and take over the ongoing work. How long it takes depends mainly on how quickly your previous accountant sends the records across, and we keep you updated throughout.
Etsy seller tax at a glance (2026/27)
View the key tax figures
| Income covered | Etsy sales, less transaction fees, payment processing fees, Offsite Ads and refunds |
|---|---|
| Trading allowance | Covers the first £1,000 of trading sales. Above that, you can deduct £1,000 instead of your actual costs |
| Platform reporting to HMRC | Platforms report seller income to HMRC each January, with an exemption for very small sellers |
| VAT registration | Compulsory above the £90,000 threshold |
| Marketplace VAT | The marketplace accounts for UK VAT on goods sold by overseas sellers from stock held in the UK, and on imported consignments of £135 or less |
Figures are for the 2026/27 tax year and were checked against GOV.UK guidance. Income Tax and Corporation Tax rates are on our e-commerce accountant page.
Etsy seller accounting FAQs
Our fees start from £95 plus VAT a month for limited companies, with no setup fee. Self Assessment starts from £245 plus VAT as a one-off fee. You receive a fixed quote at the end of your free 30-minute call, based on your turnover, transactions, VAT, payroll and number of directors. Any records alignment or bookkeeping catch-up is quoted separately in writing before work starts.
Yes, once your UK taxable turnover passes £90,000 in any rolling 12 months or you expect turnover in the next 30 days alone to go over £90,000. Overseas sales, digital products and marketplace arrangements can all affect your position, so we check your specific circumstances.
Yes. Under the digital platform reporting rules that started in January 2024, online marketplaces including Etsy share seller income details with HMRC. Sellers with fewer than 30 sales and €2,000 (roughly £1,700) or less of sales in a calendar year are excluded. If you are above that, HMRC will expect your sales to appear on your tax return.
If your Etsy selling is a trade and your gross sales are over £1,000 in a tax year, you need to register for Self Assessment by 5 October after that tax year ends. The £1,000 trading allowance is measured on sales before costs, not on profit.
Materials, packaging, postage, Etsy fees, Offsite Ads, advertising and equipment used for the shop are allowable business costs. Where a cost is part personal, you claim the business share only.
It depends on your numbers. NDCA compares both options using your actual figures and, if a company suits you, handles the incorporation.
Related guides
How much tax does a UK Etsy seller pay? 2026/27 worked examples
Worked 2026/27 examples of the Income Tax and National Insurance a UK Etsy seller pays at £20,000…
Do I Need to Register for VAT as an Amazon or eBay Seller?
Find out when Amazon and eBay sellers must register for VAT in the UK, what the £90,000 threshold…
Xero for E-Commerce: How to Connect Your Store
Learn how to connect your e-commerce store to Xero, automate your bookkeeping and keep your…
Ready to get your accounts under control?
Get Etsy Payments, fees, VAT and Self Assessment sorted with fixed monthly fees.
