Most costs of running the shop are allowable if they are wholly and exclusively for the business: platform and payment fees, postage and packaging, storage and fulfilment, software, advertising, photography, accountancy fees and a share of home costs. Personal spending, fines and client entertaining are not.
| Cost | Notes |
|---|---|
| Marketplace and payment fees | Amazon, eBay, Etsy, Shopify, PayPal and Stripe fees are allowable, including those netted off your payout. |
| Postage, packaging and courier costs | Allowable in full. Keep the platform's postage records. |
| Storage and fulfilment | FBA fees, third-party warehouse and rented storage. |
| Software and subscriptions | Store platforms, inventory and accounting software, design tools. |
| Advertising and sponsored listings | Allowable, including social media advertising and influencer fees. |
| Photography, props and listing design | Allowable when for your product listings. |
| Accountancy and bank fees | Allowable, including business account charges. |
| Equipment | Printers, packing equipment, cameras and laptops, usually through the Annual Investment Allowance. Business cars are excluded from it. |
If you work from home you can claim a proportion of household bills, or use flat rates instead: £10 a month for 25 to 50 hours of business use, £18 for 51 to 100 hours, and £26 for 101 hours or more. Simplified mileage rates are available for business trips such as trips to the post office or a supplier, and you can claim either those or actual vehicle costs, not both.
If your total business income is £1,000 or less, the trading allowance means you do not need to report it. Above that, you can deduct the £1,000 allowance instead of actual expenses, though it only helps if your real costs are lower. To catch every fee, reconcile against the platform's own reports rather than bank statements. Our multi-channel bookkeeping guide shows how.
Sources: GOV.UK: expenses if you are self-employed, GOV.UK: simplified expenses, working from home, GOV.UK: tax-free allowances on property and trading income.
We reconcile against what each platform actually reports as fees, so you are not missing legitimate costs.
Talk to an AccountantMost costs of running the shop are allowable if they are wholly and exclusively for the business: platform and payment fees, postage and packaging, storage and fulfilment, software, advertising, photography, accountancy fees and a share of home costs. Personal spending, fines and client entertaining are not.
Yes. Marketplace, referral and fulfilment fees are allowable business expenses. They are often netted off your payout, so use the platform's own sales report to see the full amount.
Yes, either a reasonable share of household costs or flat rates of £10, £18 or £26 a month depending on the hours you work at home. The flat rate is simpler and needs no bills.
No. You either deduct the £1,000 trading allowance in place of actual expenses, or you deduct your real expenses. Choose whichever gives the lower profit.