Maximise your e-commerce earnings: Your new Shopify Accountant & Tax Advisor - ESDG Accountancy

Maximise your e-commerce earnings: Your new Shopify Accountant & Tax Advisor

Photo of author

Ed, Chartered Accountant

Hey there, e-commerce gurus! Are you tired of juggling numbers, taxes, and financial reports while trying to grow your online store on Shopify? If so, you’ve come to the right place. We’re here to offer you bespoke UK accountancy services tailored specifically for your e-commerce business, so you can focus on what you do best – selling your fantastic products online.

Why getting the best accountancy and tax advice for Ecommerce and Shopify Business Owners Matters

The Ever-evolving World of E-commerce: E-commerce is a rapidly changing landscape, and keeping up with the latest tax rules, ensuring your VAT is handled correctly regulations, and various other financial practices can be daunting for business owners.n

Time is Money: As an e-commerce entrepreneur, your time is precious. Let our accountant and tax experts handle the financial side of things, so you can spend your valuable time growing your business.n

Tax Planning: Every e-commerce business is unique. Our UK tax planning services for e-commerce business owners and Shopify store owners are tailored to your specific needs, ensuring you legally pay the least tax possible.

UK Tax Insights for Online Shop and Shopify Store Owners

VAT and Online Sales

Value Added Tax (VAT) is a critical aspect of managing an online store in the UK. If your e-commerce business generates over £85,000 in taxable sales within a 12-month period, you’ll need to register for VAT. Once registered, you must charge VAT on applicable products and services sold to customers within the UK and the European Union. However, if you sell goods to customers outside the EU, these sales are generally zero-rated for VAT purposes. It’s essential to keep accurate records of your sales and VAT charges, as you’ll need to submit VAT returns to HMRC regularly.

Digital Services and the VAT Mini One Stop Shop (MOSS)

If you sell digital services, such as e-books, software, or online courses, to customers in other EU countries, you’ll need to adhere to the VAT Mini One Stop Shop (MOSS) rules. Under MOSS, you’re required to charge VAT based on the customer’s location, rather than your own. This means you’ll need to apply the appropriate VAT rate for each EU country where your customers are located. Fortunately, the MOSS system simplifies this process by allowing you to report and pay VAT for all EU countries through a single online portal.

Income Tax and Corporation Tax

As an online shop owner, you’ll also need to consider your income tax or corporation tax obligations, depending on your business structure. If you’re a sole trader or in a partnership, you’ll need to report your e-commerce profits on your Self Assessment tax return and pay income tax accordingly. On the other hand, if your online shop operates as a limited company, you’ll be subject to corporation tax on your profits. If you are not already, you should also be aware of the tax advantages of operating via a Limited Company model – which we are more than happy to discuss with you.

By staying informed and proactive about your UK tax obligations, you can keep your online shop compliant and avoid any unpleasant surprises down the line. Partnering with a trusted accountancy service specialising in e-commerce can also help you navigate the complexities of the UK tax system, allowing you to focus on growing your online business.

Services We Offer

Tax Planning and Compliance

  • VAT registration and returns
  • Corporation tax annual HMRC return and advice.
  • Making Tax Digital compliance
  • Help choosing the Optimum Director Salary for your business.
  • Long-term tax planning to minimise your tax bill.
  • Self-Assessment Personal Tax Returns for Limited Company Directors.Advice on profit extraction from your Limited company.

Bookkeeping and Financial Reporting

  • Annual Statutory Accounts for HMRC and companies house.
  • Cloud-based accounting software set-up and assistance (Xero, Pandle, Sage, Quickbooks, FreeAgent and more).
  • Quarterly or Monthly Management Accounts
  • Company Secretarial Services and Confirmation Statements.

Payroll Management

  • Employee pay and deductions
  • Director Payroll
  • Real Time Information (RTI) submission
  • Auto-enrolment pension scheme support
  • Dividends.

A comprehensive and up-to-date list of our services provided with additional information can be found here.

How We Stand Out: The Perks of Choosing Our UK Accountancy Services

Shopify Expertise: We understand the intricacies of running a business on Shopify, and we’re well-versed in the platform’s financial aspects. We are experts at reporting via Shopify and ensuring it is integrated into your cloud accounting platform of choice.n

Dedicated Chartered Accountant: You’ll have a dedicated and ICAEW qualified accountant to guide you through your financial journey, ensuring you stay on track and avoid any pitfalls.n

Proactive Approach: We don’t just crunch numbers. We take a proactive approach, helping you identify opportunities to save money, optimise your tax situation, and improve your bottom line.

FAQs: Get the Answers You Need

Can I get a free consultation to discuss my e-commerce business needs
Absolutely! Reach out to us and we’ll arrange a free, no-obligation call to discuss how our accountancy services can support your Shopify store. For those based locally to us you are welcome to arrange an in-person appointment at our Blackheath office.

Do you work with e-commerce businesses outside the UK?
While the majority of our clients are UK-based e-commerce businesses, we can also provide support for international businesses with a UK presence (and do so currently!). Get in touch to discuss your specific needs – our firm is paperless and accustomed to working with clients remotely, so we are well set up to handle overseas clients.

How do your fees work? Are there any hidden costs?
We believe in transparency, so you’ll always know exactly what you’re paying for. Our fees are based on the services you require, and we’ll discuss these with you during our initial consultation.

Your E-commerce Success Starts Here

Our accountancy and tax services for e-commerce and Shopify store owners isn’t just about us providing our technical expertise – it’s about offering you the support and peace of mind you need to achieve e-commerce success.

With our tailored solutions, dedicated chartered accountant, and in-depth Shopify knowledge, you can trust us to handle your financial affairs while you focus on growing your business. So why wait? Get in touch today, and let’s work together to unlock your e-commerce potential.

About the author

Ed is qualified Chartered Accountant and founded ESDG Accountancy in 2020. He has gained extensive experience in various sectors, working with business owners, international groups, & private equity investors.