Making Tax Digital for Ecommerce
Marketplace fees, stock and cost of goods, payment processors and a tangle of VAT rules — online selling has a tax model all of its own. We’re MTD-ready accountants for ecommerce sellers across the UK, on fixed monthly fees.
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The Tax Digital Accounts Team
Ecommerce Specialists
We speak ecommerce.
You’d rather be sourcing products and growing your store than reconciling Amazon settlements and working out VAT on EU sales. We understand how online selling works — marketplace and payment fees, stock and cost of goods, returns, and VAT across borders. We turn it into clean digital records and quarterly MTD submissions, so you can scale with confidence.
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Quarterly Zoom Reviews
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The MTD Checklist
Tick the boxes that apply to your business.
Are you MTD-ready for Ecommerce VAT and digital records?
Not Yet Compliant
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Why Ecommerce Switch to TaxDigital
Ecommerce accounting isn’t just “normal bookkeeping, but online”. The detail sits in the gaps between platform reports, payment processors, and HMRC rules. Here’s why Ecommerce businesses choose Tax Digital for MTD support.
| Feature | Traditional Accountant | TaxDigital for Ecommerce |
|---|---|---|
| Record Keeping | Paper receipts & spreadsheets | 100% Paperless via App |
| Response Time | Days or weeks | Same Day / Instant Chat |
| Pricing Model | Hourly billing + Year-end bill | Fixed Monthly Subscription |
| Tax Visibility | Surprise bill once a year | Real-time Liability View |
| Industry Knowledge | Generalist (Jack of all trades) | Specialist Ecommerce Team |
| Software | Desktop / None | Xero / QuickBooks / FreeAgent |
MTD is for Sole Traders — Here's Yours
Making Tax Digital only applies to sole traders and landlords. We've built a dedicated package specifically for you — no fluff, no overpaying for things you don't need.
Sole Traders — Sole Traders
Why MTD Matters for You
Quarterly Digital Reporting
HMRC now requires quarterly submissions via MTD-compatible software — we handle all of them for you.
Penalty-Free Compliance
Missing MTD deadlines carries real fines. We keep you compliant so you never have to worry.
Tax-Efficiency Built In
We don't just file — we find every legitimate deduction and reduce your bill, year after year.
Packages
Choose a package based on how many channels you sell on, whether you hold stock, and how frequently you want support. If you’re unsure, we’ll point you to the right fit after a quick review of your current setup.
Detailed Plan Comparison
See exactly what’s included in each plan — no hidden fees, no surprises.
| Features |
Sole Traders
£69+VAT/per month
|
Landlords
£39+VAT/per month
|
|---|---|---|
| MTD Compliance | ||
| Quarterly MTD Submissions | ||
| HMRC Digital Account Setup | ||
| End-of-Year Final Declaration | ||
| Accountancy Services | ||
| Self Assessment Tax Return | ||
| Year-end Accounts | — | |
| VAT Returns | — | |
| Support & Advice | ||
| Support Channel | Email Only | Email & Phone |
| Dedicated Accountant | — | |
| Tax Planning Review | — | Annual |
| Software | ||
| Bookkeeping Software | Basic | Standard |
| Receipt Scanning | ||
| Real-time Tax Liability View | ||
| Get started | Choose Plan | Choose Plan |
* Prices exclude VAT. Terms and conditions apply.
Services for Ecommerce
How we saved Northway Goods (multi-channel DTC brand)...
Northway Goods sold through Shopify and Amazon, with payments landing through Stripe and Amazon settlements. Their bookkeeping was falling behind because bank receipts didn’t match sales reports, and VAT totals were being estimated at the quarter end.
Tax Digital rebuilt the workflow: we mapped tax rates, set up integrations, created a tidy chart of accounts for platform fees and refunds, and introduced a monthly reconciliation routine. This meant VAT returns were based on reconciled figures, not best guesses, and the owner could see true margins after fees.
Ready to simplify your tax?
Join hundreds of other ecommerce who have made the switch to digital.
"Nice and smooth communication – a few phone calls and emails, and they got my income tax sorted to comply with MTD."
Malta Ma
Verified Client"If you're a landlord, you'll know how hard it is to keep up with all the changing rules. MTD is just another headache. The TaxDigital…"
An Go
Verified Client"i'm a web developer - they are very good and charge a good monthly fee"
Taylor
Verified ClientEcommerce & online seller tax — your questions answered
Have more questions?
Speak to one of our ecommerce experts directly.
The Ecommerce Handbook
Everything you need to know about keeping your ecommerce business compliant and profitable.
Making Tax Digital for Income Tax (MTD for ITSA) moves self-employed reporting online. From 6 April 2026 it applies to sole traders with qualifying income over £50,000, falling to £30,000 (2027) and £20,000 (2028). Qualifying income is gross sales before fees and costs, so a busy store can reach it quickly. You will keep digital records, send a quarterly update, and file a final declaration. We connect your channels and get you set up early.
Capturing every cost protects your margin. Common allowable expenses include:
- Cost of goods and stock
- Marketplace and payment fees (Amazon, eBay, Etsy, PayPal, Stripe)
- Packaging, postage and courier costs
- Software, apps and subscriptions (Shopify, listing and accounting tools)
- Advertising and promotions
- Storage, fulfilment (e.g. FBA) and the business share of home and phone
We reconcile each marketplace settlement so fees and refunds are handled correctly.
VAT is where online sellers most often trip up. You must register once taxable turnover passes £90,000, but cross-border selling can create obligations sooner — the EU OSS/IOSS schemes for distance sales, and marketplace VAT rules where the platform collects VAT on certain transactions. Imports, the £135 consignment rules and overseas warehousing all have their own treatment. We keep your VAT position under review and handle registration and returns so you stay compliant as you grow.
Since January 2024, online platforms report seller activity to HMRC, so the days of under-the-radar selling are over. The good news is that the same tidy records that satisfy HMRC also tell you which products actually make money. We connect your sales channels to your accounting software, reconcile payouts automatically, and keep clean digital records that line up with what the platforms report.
MTD quarterly updates are due about a month after each quarter (7 August, 7 November, 7 February and 7 May); your final declaration and tax are due by 31 January. Xero, QuickBooks and FreeAgent are all MTD-ready and integrate with Shopify, Amazon and the payment tools you already use. We set up the right stack, connect it to HMRC and file for you.
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