Welink Accountants Welink Accountants

4 Top Tax Tips For eCommerce Businesses

4 Top Tax Tips for eCommerce Businesses


Starting an online business is an exciting time and there’s lots of money to be made online, no matter what industry you’re in. But of course, the more successful you are, the more tax you’ll have to pay, so finding ways to cut costs here and there makes perfect business sense.


There are lots of tax deductions available out there; it’s just a matter of researching what’s available and seeing what applies to you. Here are a few top tax tips from us to help get you started.


At-home office deductions


If you work from home, you can claim a deduction for using part of your home as an office, whether you claim back costs for a conversion or extension, or if you decide to claim a business proportion of the total costs of using your house as a place of work.


Internet & mobile phone deductions


Obviously, as an eCommerce enterprise, you can’t operate without being connected to the internet, so this makes your internet bill tax-deductible. And if you use your smartphone for business purposes, the portion of your bill that relates to your operations can also be deducted.


Check out HMRC’s flat-rate scheme


Tax is usually 20 per cent on your goods and services, but you can potentially avoid this by joining HMRC’s flat-rate scheme, which is open to businesses with a turnover of below £150,000. Joining could see you pay back 16.5 per cent in tax.


Sell reduced rate products


While the vast majority of goods incur VAT at 20 per cent, there are some - like cycle helmets, mobility aids, nicotine patches, and children’s car seats - that have a reduced rate of five per cent. Others, like books and baby clothes, are charged at zero per cent tax.




Click below to learn more about our services.

Are you an accountant?

List your firm on the leading platform for accountants and auditors