Selling On Etsy Uk Taxes
Setting an Etsy shop is absolutely free. You don’t have to pay for membership or incur any other expenses to set up your store, but you’ll incur these costs as default:
- 3.5% of the total selling price
- $0.20 for listing one item (you can refer a friend to open a shop and earn 40 free listings)
Additional extras, which charge different fees, include promoted listings, automatic re-listing (at $0.20 each), shipping labels, deposit currency conversion for items listed in a different currency, multiple-quantity fee for the sale of more items, and direct checkout.
Income generated by your Etsy shop is deemed self-employment income, so you’ll need to complete IRS’s Schedule C form, irrespective of your form of business. Many people prefer a sole proprietorship when opening their online shops.
There’s no legal requirement for forming a sole proprietorship, and you may hire contractors and employees. If you have to pay self-employment tax, you’ll also need to complete a Schedule SE form.
Earning a decent income on Etsy is not that difficult. You can certainly set up a successful Etsy shop and start earning some cash from your hobby.
What’s more, there’s good news to owning an eCommerce business. You can have fun making some extra cash on the side, or decide to grow it. And there’s even a vacation mode on Etsy, so you won’t need to worry about business when you get away.
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What are you waiting for? Get started now and list your first handmade items on Etsy.
Can you sell through multiple channels and offline using Shopify? Read on to learn how Shopify makes it easy to sell your products everywhere, from websites to mobile apps to in-store.