Following on from the previous article and possibly reaching the VAT turnover threshold, be aware that your turnover is not necessarily what you receive into your bank account.
If you are providing holiday lets through an agent for instance, they might pay you £780 to your bank account – but your actual sales figure may be say £1000 with commissions and VAT deducted of £220. Sales is £1000, not £780.
The same principle applies in many other areas – sales through Etsy, eBay, Amazon, PayPal or any of the other online platforms will work in the same way – with their commissions, listing fees, advertising and sundry other charges deducted from the sales figure before paying you the net amount.
Ensure you are accounting for these properly! There is a danger of significant VAT under declarations if you are only recording the net figure as your sale.
Contact us and we can guide you on the record keeping ensuring you do not fall foul of these requirements.
