Start with Etsy’s full sales, fees, refunds and adjustments, then reconcile them to the bank payout. The final deposit is not necessarily your turnover. Include other selling platforms and align the records with the UK tax year rather than relying on a calendar-year total.
Download the shop statements
Keep transaction exports and relevant payment reports for the tax year. Record which periods they cover and retain supporting invoices. If your shop also sells elsewhere, give the accountant those records rather than assuming one marketplace report covers the whole business.
Reconcile before calculating profit
Ask how the sales figures relate to the payout. Fees deducted before the money reaches your bank need identifying, but should not be deducted again if they have already been accounted for in the figures used.
Refunds and cancelled orders need a clear trail. Keep a note when an adjustment relates to an earlier transaction so it can be considered correctly.
Organise costs by business purpose
Keep evidence for materials, packaging, postage and other shop-related spending. Explain any mixed personal use. The accounting treatment depends on your circumstances and method, not simply the name of the retailer on a receipt.
Platform reporting to HMRC does not replace your responsibility to establish the correct figures and filing position.
Example: the payout reconciliation
A shop may receive customer payments, issue refunds and have fees deducted before the remaining money reaches the bank. Keep a schedule linking those components. Do not treat the final payout and original sales as two separate sets of income.
What if statements use a calendar year?
Tell the accountant what period the export covers. UK tax-year preparation may need a different cut-off, so an annual platform report should not be copied into the return without checking its dates.
Do platform reports mean I no longer need my own records?
No. Your accountant still needs evidence to assess the correct figures and expenses. Download exports and invoices while access is available, and retain explanations for changes such as a shop closure or migration to another sales platform.
Next step: Give TaxSimba your marketplace exports, bank statements and cost records together. This is more useful than sending only the amount withdrawn from the platform.
A payout example you can check
Suppose a shop statement shows £1,000 of sales, £50 of refunds and £100 of fees, leaving an £850 payout. That £850 is the reconciliation result, not a complete list of tax-return inputs. Keep each component and the transaction dates, then apply the accounting method and any VAT treatment actually relevant to the shop.
Reconcile a platform reserve with the payout
Illustrative preparation example.
An Etsy report includes sales not yet paid out because money is held in reserve. Keep the report, fees, refunds and later release visible. Tell the accountant the accounting method before treating the bank deposit as the sales total.
Check: Which difference is a timing item, a fee, a refund or missing income?
| Check | Practical action |
|---|---|
| What does each platform deduction represent? | Separate fees, refunds and other adjustments using the detailed report. |
| Do payouts reconcile to the platform balance? | Account for timing and retained funds rather than forcing every month to match exactly. |
| Are stock and other costs supported? | Keep purchase records and confirm treatment under the accounting basis used. |
Can I claim fees separately after reporting net payouts?
Avoid deducting the same fee twice. Reconcile gross figures and deductions consistently.
Do sales on another platform get a separate allowance?
No. Relevant trading receipts across platforms must be considered together under the applicable rules.
Download a checklist for this guide
- Download detailed sales and adjustment reports.
- Reconcile opening balance, activity, payouts and closing balance.
- Keep fee and refund evidence.
- Gather materials, postage and equipment records.
- List other selling platforms and cash sales.