Tax Return for Etsy Sellers
Complete your Self Assessment in 8 minutes. Claim all your allowable expenses and submit directly to HMRC.
- Track order income
- Materials and packaging expenses
- Platform fee support
- MTD-ready for 2026
Example Tax Calculation
Based on typical etsy sellers earnings £26,000/year
*Illustrative example based on 2024/25 tax rates. Your actual tax depends on your specific circumstances.
Allowable Expenses for Etsy Sellers
Claim these tax-deductible expenses to reduce your tax bill
Materials and Supplies
Raw materials and supplies used to make products.
Tip: Keep receipts and supplier invoices.
Packaging and Postage
Mailers, boxes, labels, and delivery costs.
Tip: Track postage by order or batch.
Etsy Fees
Listing fees, transaction fees, and payment processing costs.
Tip: Download statements from Etsy.
Production Equipment
Tools and equipment used to create products.
Tip: Claim business-only items or apportion use.
More expenses you can claim
How to File Your Tax Return
Follow these simple steps to complete your Self Assessment
Gather Your Documents
Collect income records, receipts, and expense statements
Enter Income & Expenses
Add your earnings and claim allowable expenses with our guided flow
Review Your Calculation
See exactly how much tax you owe with real-time calculations
Submit to HMRC
File your tax return directly to HMRC in minutes
Key Deadlines for 2024/25 Tax Year
Don't miss these important dates
5 April 2025
Tax Year Ends
Calculate your final income and expenses
5 October 2025
Register for Self Assessment
If this is your first year self-employed
31 January 2026
Online Filing Deadline
Submit your tax return and pay any tax owed
6 April 2026
MTD Starts (£50k+)
If your income exceeds £50,000, you must use MTD software
Late Filing Penalties
1 day late: £100 fixed penalty
3 months late: £10/day up to £900
6 months late: 5% of tax owed or £300 (whichever is higher)
12 months late: Additional 5% or £300
Plus interest on any tax paid late. Avoid these costs by filing early with QTax.
Frequently Asked Questions
Answers to common questions about tax returns for etsy sellers
Do I need to register for Self Assessment as an Etsy seller?
If your Etsy income exceeds £1,000 in a tax year, you must register for Self Assessment.
Can I claim postage and packaging?
Yes. Packaging materials and delivery costs are allowable expenses.
What records should I keep?
Keep sales reports, receipts, invoices, and records of Etsy fees.
Related Guides
Explore tax guides for similar professions
Ready to File Your Tax Return?
Join thousands of UK etsy sellers who trust QTax for their Self Assessment