Crunch Accounting Solutions for E-commerce Businesses

Absolutely, however, there may be benefits to you becoming a Limited Company. Something our advisors can discuss with you. If you're a sole trader and just starting out on your e-commerce journey, we also provide our Sole Trader Pro plan.

If your e-commerce limited company has made a profit, it can pay a dividend to shareholders. It’s important to remember that dividends aren’t a business expense when calculating your Corporation Tax, and that it’s illegal to pay a dividend if your company doesn’t have sufficient profit after tax available to cover the dividend amount.

You’ll need to include every business bank transaction that relates to your limited company to ensure your accounts remain in balance and you can reconcile them at year-end.‍With secure Open Banking connections, you can link your business bank account in multiple currencies directly to your Crunch e-commerce account and import all of your transactions. From there, reconciling your bank accounts becomes a simple job!

There’s no legal obligation for a e-commerce business to have an accountant, but given the legal responsibilities you’ll have as a business director, as well as the various taxes your company will need to pay, an accountant is a vital ally.A good accountant can help you stay on top of your e-commerce business finances, submit your tax returns, and free up your time so you can do what you do best - run your e-commerce business!

There are complex rules surrounding the type of company which must have an audit. You can find out more if you check HMRC’s website.In general terms, if your company’s turnover is below £10.2 million, and its assets are below £5.1 million, you do not need to have an audit. However, some companies with turnover and assets below these amounts elect to have an audit to comply with financial covenants.

It's easier than you might think, but as every business is unique, our advisors will walk you through the process to ensure it is as seamless as possible.

At Crunch, our E-commerce business packages start from as little as £159.50 + VAT per month depending on your annual turnover. Our accounting experts will be able to advise the best package for you and your business.You get access to a dedicated accountant, bookkeepers and client managers who can help you manage your e-commerce business finances, tax responsibilities, and so much more!

Your business will have an accounting period. When the accounting period ends, you’ll need to prepare accounts and submit them to Companies House and HMRC. Accounts are usually produced using accounting software. To make this process as smooth and accurate as possible, all of your e-commerce business records, such as your expenses, sales invoices etc. should be stored in secure online accounting software. Not only will this help you stay compliant with HMRC’s Making Tax Digital (MTD) rules for VAT and other taxes, it’ll also help you stay more organised and simplify your tax returns.With our e-commerce business plans, you also get an experienced ACCA chartered certified accountant to do the heavy lifting for you!

Usually, the most tax-efficient way to pay yourself as a limited company director is by taking a combination of a salary and dividends from your limited company. Most directors prefer to keep their salary low, and below the National Insurance threshold, and pay themselves more in dividends. The salary will be paid to you as a director, in the same way as a regular employee. Our article, "How much should I take as a salary from my limited company?", can talk you through this process in much greater detail.

Each of the following counts as one Sales Channel:

• A single Amazon Merchant ID (One region)
• A single Shopify store
• A single eBay store
• A single Etsy store

A single Amazon merchant ID can give access to multiple Amazon marketplaces. For example, when you connect a client’s Amazon Europe account (using their Amazon Europe merchant token) LMB will gain access to all Amazon Europe marketplaces they sell on.

This could be: Amazon.co.uk, Amazon.de,  Amazon.es,  Amazon.it,  Amazon.fr,  Amazon.nl,  Amazon.se, Amazon.pl,  Amazon.com.be

Not sure? Don't worry, our advisors can clarify this for you.

E-commerce Limited company directors may be required to pay a number of different taxes: some limited company taxes are mandatory for all directors, while others will depend on factors such as whether your company has employees.Some of the taxes you may be required to pay include Corporation Tax, National Insurance, and VAT. Check out our article on what taxes you pay as a limited company director for a more detailed rundown!

You must file your company’s accounts with Companies House nine months after the company’s accounting period ends. The company’s Corporation Tax return and accounts must be submitted to HMRC within 12 months after the accounting period ends to which it relates.