E-commerce Seller Tax Calculator United Kingdom
Estimate what you could get back as a e-commerce seller in United Kingdom. Applies United Kingdom marginal rates including nation tax and the National Insurance (Class 1). Free, and no sign-up.
What e-commerce sellers can claim in United Kingdom
- Trading allowance £1,000
- Cost of goods sold
- Marketplace and platform fees
- Payment processing charges
- Postage and packaging costs
- Warehouse or storage rent
- Use of home as office
- Working from home flat rate
- Capital allowances on packing equipment
- Annual Investment Allowance on assets
- Website hosting and subscriptions
- Advertising and PPC costs
- Import duty and freight costs
- Class 2 and 4 National Insurance
In the UK, employees can only claim expenses incurred wholly, exclusively and necessarily in the performance of their duties (usually via form P87 or Self Assessment, and often as an agreed HMRC flat rate expense under EIM32712), whereas self-employed sole traders deduct a much wider range of allowable business expenses, capital allowances and simplified flat rates.
You can only claim the work-related portion, you must have spent the money yourself without reimbursement, and you need a record to prove it.
Frequently asked questions
What can a e-commerce seller claim on tax in United Kingdom?
Commonly claimed deductions include trading allowance £1,000, cost of goods sold, marketplace and platform fees, payment processing charges. In the UK, employees can only claim expenses incurred wholly, exclusively and necessarily in the performance of their duties (usually via form P87 or Self Assessment, and often as an agreed HMRC flat rate expense under EIM32712), whereas self-employed sole traders deduct a much wider range of allowable business expenses, capital allowances and simplified flat rates.
How much tax does a e-commerce seller pay in United Kingdom?
It depends on your income and your nation. The calculator applies United Kingdom marginal rates including nation tax and the National Insurance (Class 1).
Do I need to sign up to use this calculator?
No. This calculator is completely free and requires no account. Nothing you enter is saved.
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- The $1,000 No-Receipts Deduction: Is It Right for You?
- Work From Home Tax Deductions 2025: The Complete Guide
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Estimate only — not tax advice. Confirm with the HMRC or a registered tax professional.