Hey, I have a small business on TikTok shop that has been doing quite well. I also sell on ebay. I’m currently setting up my Shopify store as I’m hoping to expand. However, I’m wondering whether I should be paying tax, charging VAT etc for items in my shop.

It’s not a registered business and I have no employees. I have been keeping account of all my spendings & earnings but I feel like I’m supposed to pay some kinda tax. If anybody is in the UK & has any knowledge of how the taxes work for small businesses, I would really appreciate ANY advice. I’ve been on the govt websites & it just doesn’t make sense to me.

Thank youuu

  • Toffmel18@alien.topBEnglish
    1·
    10 months ago

    You won’t be registered for VAT - you don’t have to until revenue is over 85k. So you don’t need to charge VAT on your sales.

    You get £1k trading income tax free, anything over you need to declare via self-assessment. You can waiver the tax-free 1k if you want to deduct business expenses from your sales. Only worth doing if your costs are over £1k. The income will be taxed on top of any employment income. So if you have a full time job that has utilised your personal allowance, you’ll be taxed.