Specialist UK accountants for Etsy sellers — handmade products, vintage items, digital downloads, print-on-demand and custom orders.
Running an Etsy shop means juggling materials costs, platform fees, packaging, shipping and inventory alongside creating your products. We understand exactly how Etsy seller tax works, every expense you can claim, and why creative businesses need specialist support — not a general accountant who has never heard of listing fees.
Etsy shares seller income data with HMRC under DAC7 platform reporting rules. If you sell on Etsy, HMRC may already have a record of your gross sales before you file your return. Your declared income must be consistent with what Etsy reports. Undeclared income or mismatched figures are a red flag. Read our guide on Etsy seller tax or book a call to make sure your records are in order.
Most accountants see online selling and treat it as simple self-employment. We understand the reality of an Etsy shop — materials that need to be matched to sales, multiple Etsy fee types, seasonal demand spikes, digital and physical products with different cost structures, and DAC7 platform reporting already active.
Handmade products, vintage items, digital downloads, print-on-demand and custom orders — we understand every Etsy income type and exactly which expenses you can claim. Read our guide to every expense Etsy sellers can claim.
For handmade sellers, materials are your biggest cost — and they need to be matched against sales correctly as cost of goods sold to give an accurate profit figure. We set up your bookkeeping so stock purchases, unsold inventory and COGS are all tracked properly.
Listing fees, transaction fees, payment processing fees, Etsy Ads, offsite ads and currency conversion fees — every one of these is a deductible business expense. We make sure all platform fees are captured and claimed correctly rather than buried in your payout figures.
Selling digital downloads alongside physical products means different cost structures — and potentially different VAT treatment if you cross the threshold. We make sure both income streams are reported correctly and your VAT position is monitored. Read our guide on why Etsy sellers need specialist accounting.
Earning over £50,000 from your Etsy shop? MTD for Income Tax applies from April 2026. We set up digital records and handle all quarterly submissions for you.
No hourly rates, no surprise invoices. A clear monthly fee that covers everything — you know the cost from day one regardless of your order volume.
From your first Self Assessment to ongoing bookkeeping, VAT, limited company accounts and tax planning — we handle the financial side so you can focus on creating and growing your shop.
Etsy sellers have more claimable costs than most realise — from materials and Etsy's own fees through to photography equipment and home studio costs. Read our full guide to every Etsy seller tax deduction for the complete breakdown.
For handmade sellers, materials are deducted as cost of goods sold — but only when matched to the items you actually sell, not simply when you buy them. If you buy £500 of materials but only sell half of what you make that year, your COGS is roughly £250, not £500. Unsold stock remains as an asset. Without correct COGS tracking, your profit figure will be wrong and your tax bill may be inaccurate. We set up your bookkeeping so materials costs are correctly matched to your sales throughout the year.
Etsy charges listing fees (£0.16 per item), transaction fees (6.5% of sale price), payment processing fees, Etsy Ads spend and offsite ads fees (12–15% when a sale comes through an offsite ad). Every one of these reduces your real profit and is a legitimate deductible expense. Most sellers see a net payout figure and miss the individual fee breakdown. We make sure all Etsy fees are captured correctly from your seller account data. Read our full guide to Etsy seller tax deductions.
Digital downloads — printables, patterns, templates, artwork — have very different economics from physical products. Material costs are negligible, but software, design tools, storage and the time value of creating the files are real costs. If you sell digital products to customers in other EU countries, cross-border digital VAT rules can apply even before you hit the UK threshold. We make sure digital and physical income streams are handled correctly and your VAT position is monitored as your shop grows. Read our guide on why Etsy sellers need specialist accounting support.
Etsy shops can grow quickly during peak seasons — Christmas, Valentine's Day and Mother's Day can significantly increase turnover. Understanding which thresholds apply means you can plan ahead rather than react.
Unsure where you sit? Book a free discovery call and we will work it out together. HMRC has guidance on how to register for Self Assessment and VAT registration.
Clear advice, plain English and a team you can actually reach — not just at January deadline time.
We know listing fees from transaction fees, understand COGS for handmade sellers and can read an Etsy payout statement — so your books are set up correctly from the start.
Message us on WhatsApp and get a reply within 24 hours — no extra charge, no waiting until your next scheduled call.
No hidden costs or surprise bills. You know exactly what you pay each month and what is included from the start.
Whether you are scaling your product range, approaching the VAT threshold or considering a limited company, we help you plan ahead — not just file backwards.
Everything you need to know before booking a call.
Running an Etsy shop means turning creativity into income — but it also means navigating HMRC, platform fees and inventory costs that general accountants often misunderstand.
Read more →Every pound spent on your Etsy business can potentially reduce your tax bill — but many sellers miss significant allowable deductions. Here is the complete guide.
Read more →If you are selling on Etsy and making money in the UK, here is a clear, complete guide to when tax applies, what you need to declare and what to do about it.
Read more →Book a free, no-obligation discovery call. We will explain exactly what we can do for you — no jargon, no surprise fees.