Does Shopify automatically handle my UK VAT?

Shopify can apply VAT to UK sales automatically, but you are still responsible for registering, filing quarterly MTD returns, and paying VAT to HMRC. Taxbix manages this process end-to-end.

How do I account for Shopify Payments fees?

Shopify Payments deducts transaction fees before paying out. These fees are a deductible business expense. Taxbix reconciles your net payouts against gross sales to calculate accurate revenue figures.

Can I claim my Shopify subscription as a business expense?

Yes - your Shopify monthly plan, app subscriptions, theme purchases, and advertising (including Meta Ads and Google Ads) are all deductible against your tax bill.

Do I need a Ltd company for my Shopify store?

Most Shopify sellers benefit from incorporating once annual profit exceeds £30,000-£40,000. Below this level, sole trader status is simpler. Taxbix models both options and advises on the right time to incorporate.

E-Commerce Accounting

Shopify Store Accountant UK

Shopify gives entrepreneurs full control over their brand - but it also means taking responsibility for your own VAT compliance, payment reconciliation, and tax planning. Taxbix provides specialist accounting for UK Shopify sellers.

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VAT for Shopify Sellers

Once your Shopify store's annual UK sales exceed £90,000, you must register for VAT. Shopify can automatically apply UK VAT to eligible sales, but the quarterly returns must still be submitted to HMRC via Making Tax Digital-compatible software. Taxbix handles VAT registration and quarterly MTD submissions.

Multi-Currency Accounting

Many Shopify stores sell to international customers in multiple currencies. For HMRC purposes, all sales must be reported in sterling using the exchange rate on the date of each transaction. Taxbix uses Shopify's export data and applies correct exchange rate conversions throughout the year.

Payment Processor Reconciliation

Shopify Payments, Stripe, and PayPal all pay out on different schedules and deduct processing fees. Taxbix reconciles all payment processor accounts against your Shopify order data monthly, ensuring your accounts accurately reflect actual revenue and fee costs.

Annual Accounts and Corporation Tax

Ltd company Shopify sellers need annual accounts prepared to Companies House standards, plus a Corporation Tax return submitted within 9 months of your financial year end. Taxbix prepares both, and advises on timing dividend payments to minimise your overall tax bill each year.

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Taxbix provides fixed-fee specialist accounting for E-Commerce Sellers. No setup fees, no long contracts.

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