A sudden change in turnover

[ClothingRetailer86]

I've been getting down about business as a sole trader and I want out at some point. All is going well but it's becoming way too much for me and I don't enjoy it like it did (selling online, namely eBay). Especially after the free to sell for private sellers stuff last year while business sellers get full fees to pay and shop fees.


After the announcement of MTD tax returns, I just want an easier life. So at the moment accounts are declared as 70k turnover, 45k expenses (stock purchases for the year, postage, eBay fees, etc). Not an exact figure but just to give you an idea.


WIth this last year's return I'll be over what HMRC say will mean from 2026 I'll have to do digital returns (50k turnover). Fine.


What I'm thinking is, business and stock purchases as usual until April 2026. A load of excess unsold previously declared stock will still exist in my possession past that point though, purchased other years.


I've got enough on at the moment and was running the business to the wire of what I can handle anyway (former ESA benefit claimant voluntarily coming off ESA to go full time with the business several years ago). With the addition of MTD, it's just not doable for me to deal with.


So, as of new tax year April 2026, I want to focus on just getting the most out of my previously declared remaining stock. Cutting the business down suddenly to a turnover of not far off the personal tax free allowance (i.e 15k of sales a year minus postage, eBay fees and £0 as stock expenses as it's already declared) and not buying any more stock.


Is that the right way to do things at the end? It feels it will be an easier way out instead of it being business as usual, dealing with MTD and paying tax on the whole lot (less eBay fees and postage) when I could just split sales over a few years and pay no tax/barely any at all.


Thanks.

 

[ClothingRetailer86]

Oh and not that I particularly understand any of it with MTD (yet). With it becoming a thing, it felt the right time to drop the turnover from April 2026 (via listing less and having more holiday sales stops) as it may have looked suspicious to HMRC previously but as with MTD and linking bank accounts, it can be seen I'm not suddenly under declaring to get out of tax responsibilities.


I'm happy to take a modest turnover in future but with little/no tax to pay than keep it pumped up as it is, but having to pay out a much higher rate of tax because I'm not buying more stock to declare as expenses.

 

[MyAccountantOnline]

I've been getting down about business as a sole trader and I want out at some point. All is going well but it's becoming way too much for me and I don't enjoy it like it did (selling online, namely eBay). Especially after the free to sell for private sellers stuff last year while business sellers get full fees to pay and shop fees.


After the announcement of MTD tax returns, I just want an easier life. So at the moment accounts are declared as 70k turnover, 45k expenses (stock purchases for the year, postage, eBay fees, etc). Not an exact figure but just to give you an idea.


WIth this last year's return I'll be over what HMRC say will mean from 2026 I'll have to do digital returns (50k turnover). Fine.


What I'm thinking is, business and stock purchases as usual until April 2026. A load of excess unsold previously declared stock will still exist in my possession past that point though, purchased other years.


I've got enough on at the moment and was running the business to the wire of what I can handle anyway (former ESA benefit claimant voluntarily coming off ESA to go full time with the business several years ago). With the addition of MTD, it's just not doable for me to deal with.


So, as of new tax year April 2026, I want to focus on just getting the most out of my previously declared remaining stock. Cutting the business down suddenly to a turnover of not far off the personal tax free allowance (i.e 15k of sales a year minus postage, eBay fees and £0 as stock expenses as it's already declared) and not buying any more stock.


Is that the right way to do things at the end? It feels it will be an easier way out instead of it being business as usual, dealing with MTD and paying tax on the whole lot (less eBay fees and postage) when I could just split sales over a few years and pay no tax/barely any at all.


Thanks.

You can choose how to run your business but I really wouldn't base any decisions solely on dealing with MTD and tax. Some good software and a good accountant can deal with that for you if that is your only concern.