Is there an easy way to work out net profit from sales last year?

[kool_spot]

Hi

For tax purposes I need to submit my net profit for last year. I'm new to this as I just started selling. Is there an easy way to work this out. The seller hub seems confusing as do the reports it generates. 

Thanks

[arkwebus]

The tax year runs from 6th April 2023 to 5th April this year.

You add up all sales for the year.     You add up all your purchases.  You add up all your expenses such as packaging, posting and so on.  HMRC may allow something [£4 per week] for use of home. 

So take all the costs from your sales and are left with Net Profit which goes on your self assessment. 

If you have other income and have used your allowance you will be charged 20% on the profit.  That may well be added to your 2025 tax and collected by PAYE. 

It sounds worse than perhaps it is.   Or not!    @kool_spot 

[the_book_seekers]

In addition to the above your total sales before deductions must include the cost postage and packing. 

P&P is then deducted as a legitimate expense. 

[papso22]

But you are not registered as a business seller?  How can you need to do tax returns (unless you have another, business account, or are trading from a private account).

[tommystrezures]

 if you are submitting for last year eg 22/23 then payments (including POA) and accounts should have been submitted by the 31st Janauary. You will potentially be fined for HMRC for late submission.

[rjwilmsi]

You can't get your net profit from eBay. eBay can tell you your gross sales and some of your expenses (total of fees, P&P). The cost of the items you sold you need to get from elsewhere - receipts, invoices etc. Unless everything you sold has also been purchased on eBay then you have to keep your own records of purchase costs.

[magpiecorner1]

First off, what dates are you calculating.

You can get the information about turnover and fees for eBay selling quite easily, but there are rule changes for year end for 2023/2024 accounting period, hence asking what dates HMRC is seeking information for.

All fairly straightforward though.

[b_quik2click]

what do you mean in addtion to above - above statement already mentions P&P.. Do you mean P&P charged as part of the sale to the customer - so £4.99 + £2 Postage.. as the total sale price - then deduct the ACTUAL Postage as an expense? 

[the_book_seekers]

Sale price plus postage and packing equals your total sale. P&P is amongst the things that can then be deducted. I'm not sure why HMRC does it this way.

[papso22]

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@b_quik2click wrote:

what do you mean in addtion to above - above statement already mentions P&P.. Do you mean P&P charged as part of the sale to the customer - so £4.99 + £2 Postage.. as the total sale price - then deduct the ACTUAL Postage as an expense? 

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That's right,  what you charge is income,  what it costs you is an expense. 

[b_quik2click]

yes.. Is it because, it's still counted as a cost to the seller even if you recover portion of it through total sale price (with postage) - many sellers offer free postage and include in the item price so probably applies as a blanket rule to cover all sellers.