Can any Accountant do Amazon FBA UK Accounting?

[macdaddy23]

I would like to start selling on amazon.co.uk and I already work full-time as an employee in London. I want to pay the least tax and have an
easy way to do the book keeping and records - and organize my business essentials properly from the start.

I have contacted several accountants who are either too busy or don't service my specific situation. There is nothing rather unique about my scenario. I am a British Citizen, hold a British Passport, have a Math's degree and worked for a number of soul-destroying companies and would like to operate a part time amazon business whilst still working.

I also want to have a hassle-free way of doing whatever admin and record-keeping I need to do and how often should it be done? I want to know what
structure should I start with and if I need to have a business bank account or just another new personal bank account?
Also, can you advise me generally on starting the business. I have my own money to buy stock and memberships.

The bottom line is most accountants I've talked to seem useless and I don't want to get stuck with some expensive incompetent professional. Are there any accountants here that can enlighten me if I can do the book keeping myself, how much a good accountant should cost and how to find a good one for my needs?


Thank You for your help...

 

[GLAbusiness]

You are doing the right thing by getting organised before you jump in and make mistakes!

A short checklist:
Limited Co or Self employed
I advise a proper accounting package - You can get FreeAgent free if you open a bank account with certain banks.
Banks take a dim view of personal account used for business. Open a business bank account.
Definitely talk to an accountant first - they will help you avoid pitfalls.

There are a number of accountants on here. Most will have an initial chat for free. @MyAccountantOnline always seems to give good sensible advice on here. Other accountants are available.

 

[BusterBloodvessel]

This guy?

Setting up bookkeeping business - any advise welcome

Hi all, I'm in a bookkeeping for at about 10 years, last three years I'm working mainly with accounting practices. I love my job, I'm good with that, but having own practice is much more than only bookkeeping. It will require a lot of new skills from me - marketing (which I'm very bad at)...

www.ukbusinessforums.co.uk

 

[DontAsk]

enlighten me if I can do the book keeping myself,

Yes, it's should be dead easy for you. There are many software packages available, some free, some low cost, some cloud based, etc, ...

You only really need an accountant for initial advice and the end of year processing. I pay once a year for this but they are happy to offer advice for simple issues throughout the year.

The fact you want to do Amazon FBA is irrelevant to the accountant, assuming Amazon give you the bookkeeping data you need.

 

[numbersrule]

I would like to start selling on amazon.co.uk and I already work full-time as an employee in London. I want to pay the least tax and have an
easy way to do the book keeping and records - and organize my business essentials properly from the start.

I have contacted several accountants who are either too busy or don't service my specific situation. There is nothing rather unique about my scenario. I am a British Citizen, hold a British Passport, have a Math's degree and worked for a number of soul-destroying companies and would like to operate a part time amazon business whilst still working.

I also want to have a hassle-free way of doing whatever admin and record-keeping I need to do and how often should it be done? I want to know what
structure should I start with and if I need to have a business bank account or just another new personal bank account?
Also, can you advise me generally on starting the business. I have my own money to buy stock and memberships.

The bottom line is most accountants I've talked to seem useless and I don't want to get stuck with some expensive incompetent professional. Are there any accountants here that can enlighten me if I can do the book keeping myself, how much a good accountant should cost and how to find a good one for my needs?


Thank You for your help...

Hi macdaddy23
I am sure you have big hopes for this and who am I to give your entrepreneurial enthusiasm a reality check? But my advice would be that you should prove to yourself that you can make £1,000 first because until you do none of it needs to be declared to HMRC anyway. It would fall within the self employed trading allowance.
As far as I am aware I think you can sign up to Amazon Seller Central as a self employed individual so you should be able to take advantage of their marketing options.
Of course, one advantage of going down the Limited Company route from the outset would be that you could register a specific name and avoid anyone else nabbing the name if you have a particular company name in mind.
But equally, remember that a Limited Company name and you as Director would be in the public domain so you may wish to consider if you should at least make your Employers aware of your extra curricular activities so that they don't find out from someone else ( if indeed that would be a concern anyway because you might think that it shouldn't be a concern at all, but I believe it can be in certain types of Employment ).

 

[MyAccountantOnline]

You are doing the right thing by getting organised before you jump in and make mistakes!

A short checklist:
Limited Co or Self employed
I advise a proper accounting package - You can get FreeAgent free if you open a bank account with certain banks.
Banks take a dim view of personal account used for business. Open a business bank account.
Definitely talk to an accountant first - they will help you avoid pitfalls.

There are a number of accountants on here. Most will have an initial chat for free. @MyAccountantOnline always seems to give good sensible advice on here. Other accountants are available.

Thank you very much @GLAbusiness

 

[MyAccountantOnline]

I would like to start selling on amazon.co.uk and I already work full-time as an employee in London. I want to pay the least tax and have an
easy way to do the book keeping and records - and organize my business essentials properly from the start.

I have contacted several accountants who are either too busy or don't service my specific situation. There is nothing rather unique about my scenario. I am a British Citizen, hold a British Passport, have a Math's degree and worked for a number of soul-destroying companies and would like to operate a part time amazon business whilst still working.

I also want to have a hassle-free way of doing whatever admin and record-keeping I need to do and how often should it be done? I want to know what
structure should I start with and if I need to have a business bank account or just another new personal bank account?
Also, can you advise me generally on starting the business. I have my own money to buy stock and memberships.

The bottom line is most accountants I've talked to seem useless and I don't want to get stuck with some expensive incompetent professional. Are there any accountants here that can enlighten me if I can do the book keeping myself, how much a good accountant should cost and how to find a good one for my needs?


Thank You for your help...

That's disappointing to hear @macdaddy23 but you will certainly find a good accountant to look after your tax and accounting and assist with all the things you mention and more.

I run an online only accountancy practice and look after lots of clients who operate in the same way as you.

How have you been looking for an accountant so far?

You are most welcome to email me and I'll see if I can help. If not I know several other good accountants who I will gladly recommend to you.

 

[MyAccountantOnline]

To answer your question - Can any Accountant do Amazon FBA UK Accounting?

Yes no reason why they can't, but you will find some accountants specialise in looking after clients in certain industries or professions, and specific client types and you may be better using an accountant who understands and is used to dealing with the type of business you are intending to set up.

 

[macdaddy23]

Hi macdaddy23
I am sure you have big hopes for this and who am I to give your entrepreneurial enthusiasm a reality check? But my advice would be that you should prove to yourself that you can make £1,000 first because until you do none of it needs to be declared to HMRC anyway. It would fall within the self employed trading allowance.
As far as I am aware I think you can sign up to Amazon Seller Central as a self employed individual so you should be able to take advantage of their marketing options.
Of course, one advantage of going down the Limited Company route from the outset would be that you could register a specific name and avoid anyone else nabbing the name if you have a particular company name in mind.
But equally, remember that a Limited Company name and you as Director would be in the public domain so you may wish to consider if you should at least make your Employers aware of your extra curricular activities so that they don't find out from someone else ( if indeed that would be a concern anyway because you might think that it shouldn't be a concern at all, but I believe it can be in certain types of Employment ).

Hi Ground Investigator,
That's the best advice I've got. that was one of the most deep-seated queries I had and I never knew there is a £1000 self employment allowance. I'll definitely try that first, but would I need a business bank account or can I create another personal bank account in a different bank, what would be best, do you think? I work in the NHS in administration, do you think that would be an issue if I start selling on amazon uk?

Thanks so much for your advice, it's the best i've had so far. cheers

 

[AlanJ1]

Hi Ground Investigator,
That's the best advice I've got. that was one of the most deep-seated queries I had and I never knew there is a £1000 self employment allowance. I'll definitely try that first, but would I need a business bank account or can I create another personal bank account in a different bank, what would be best, do you think? I work in the NHS in administration, do you think that would be an issue if I start selling on amazon uk?

Thanks so much for your advice, it's the best i've had so far. cheers

You won't get an Amazon account without a UTR or companies house number just so you are aware.

Can I also ask where you are going to buy stock from? You aren't allowed to buy from say Costco and resell (the product would be considered used), same with any other retailer.

You will also struggle to sell branded goods on Amazon without the brands permission (smaller brands normally not a problem but can be huge issues on the bigger brands).

 

[MyAccountantOnline]

Hi Ground Investigator,
That's the best advice I've got. that was one of the most deep-seated queries I had and I never knew there is a £1000 self employment allowance. I'll definitely try that first, but would I need a business bank account or can I create another personal bank account in a different bank, what would be best, do you think? I work in the NHS in administration, do you think that would be an issue if I start selling on amazon uk?

Thanks so much for your advice, it's the best i've had so far. cheers

The trading allowance is explained here

If you are self employed, for tax purposes you don't have to use a separate business bank account, although it can make book keeping quicker and easier. Banks dont generally allow personal accounts to be used for business and will sometimes close them if they become aware it's being used for business.

I don't know if the NHS allow employees working in admin to run a business whilst employed but I'd have a look at your contract of employment.

 

[japancool]

Be aware of this though:

Amazon sellers fear going under as site withholds cash

Some sellers say a new policy to hold their money in reserve is 'crippling' their businesses.

www.bbc.co.uk

 

[AlanJ1]

Be aware of this though:

Nothing new in this. Amazon has been holding sellers money in a reserve for many years.

Similar to new PayPal accounts when they hold until shipping is confirmed.

(Not that I agree with the level they do).

 

[Newchodge]

Hi Ground Investigator,
That's the best advice I've got. that was one of the most deep-seated queries I had and I never knew there is a £1000 self employment allowance. I'll definitely try that first, but would I need a business bank account or can I create another personal bank account in a different bank, what would be best, do you think? I work in the NHS in administration, do you think that would be an issue if I start selling on amazon uk?

Thanks so much for your advice, it's the best i've had so far. cheers

I don't think it is a £1,000 self employment allowance. It does not relate to profit, but to income. which I read as ignoring expenses. The link that Nicola kindly posted is ambiguous about this.

 

[MyAccountantOnline]

I don't think it is a £1,000 self employment allowance. It does not relate to profit, but to income. which I read as ignoring expenses. The link that Nicola kindly posted is ambiguous about this.

The trading allowance is a tax exemption - if an individuals self employed gross income is £1,000 or less in a tax year it doesn't have to be reported to HMRC.

 

[Newchodge]

The trading allowance is a tax exemption - if an individuals self employed gross income is £1,000 or less in a tax year it doesn't have to be reported to HMRC.

So gross income ignores any expenses? I buy something for £25 and sell it for £100, my gross income is £100? Not £75?

 

[macdaddy23]

That's disappointing to hear @macdaddy23 but you will certainly find a good accountant to look after your tax and accounting and assist with all the things you mention and more.

I run an online only accountancy practice and look after lots of clients who operate in the same way as you.

How have you been looking for an accountant so far?

You are most welcome to email me and I'll see if I can help. If not I know several other good accountants who I will gladly recommend to you.

Hi can i get your email then please.

 

[DontAsk]

Can I also ask where you are going to buy stock from? You aren't allowed to buy from say Costco and resell (the product would be considered used), same with any other retailer.

Says who? We don't even know what the items are.

The line between retail and wholesale in some sectors is very blurred these days with many companies happy to sell one to joe Bloggs (which I would call retail) or 100 or more to xcz Ltd at more attractive prices.

 

[macdaddy23]

Yes, it's should be dead easy for you. There are many software packages available, some free, some low cost, some cloud based, etc, ...

You only really need an accountant for initial advice and the end of year processing. I pay once a year for this but they are happy to offer advice for simple issues throughout the year.

The fact you want to do Amazon FBA is irrelevant to the accountant, assuming Amazon give you the bookkeeping data you need.

Hi DontAsk,

Thanks for the advice. Do you use the same accountant for every year and roughly how much would they charge for the year end accounts and tax return, assuming I did the book keeping using the software and presented month end summaries? Amazon would give me detail receipts and period sales info for the books and Supplier invoice for buying in the stock.

Thanks,

 

[AlanJ1]

Says who? We don't even know what the items are.

Says Amazon. Go and read the T&C's as it is in there.

They will invoice check new sellers and as soon as it shows a retail receipt they won't accept it.
It can be hard enough getting them to accept proper supplier invoices at the best of times.

 

[DontAsk]

Thanks for the advice. Do you use the same accountant for every year and roughly how much would they charge for the year end accounts and tax return, assuming I did the book keeping using the software and presented month end summaries?

Yes, around £700. I only send data at the year end. I scan all receipts and invoices and send everything electronically. I was complemented on how good my bookkeeping was

 

[numbersrule]

I work in the NHS in administration, do you think that would be an issue if I start selling on amazon uk?

I agree with MyAccountantOnline that you should refer to your Terms of Employment.

But irrespective of that, any Employer can take whatever decisions they like about Employees who appear to be not fully committed to their job.

It could be argued that limited amounts of extra curricular activities won't interfere with your main job but at what point do you subconsciously start clock watching because you can't wait to get home to your selling?

It's a fine line between fully committed and somewhat distracted.

People notice things.

I'm not trying to put you off, I am just saying you need to be ready to remain fully committed to your day job and make sure that your sideline does not compromise that because your sideline is currently an unproven source of income.

 

[Newchodge]

I'm not trying to put you off, I am just saying you need to be ready to remain fully committed to your day job and make sure that your sideline does not compromise that because your sideline is currently an unproven source of income.

It certainly sounds as if you are! OP you need to check yur contract of employment about outside work. If outside work is allowed, just make sure it does not affect your current job commitments.

 

[MyAccountantOnline]

So gross income ignores any expenses? I buy something for £25 and sell it for £100, my gross income is £100? Not £75?

Yes gross income is the key - so £100 in your example

 

[MyAccountantOnline]

Hi can i get your email then please.

@macdaddy23 I wont post it here as its never wise to post an email address on a public forum but if you go to my firms website you'll see an address you can use there.

 

[macdaddy23]

Hello Everyone, thanks for all your replies. I found an outstanding accountant who gave me lots of the advice I was seeking. He advised me to keep things as simple as possible - which was one of my requirements, to go the Sole Trader route, apply for the UTR, get a free trial of Xero for the bookkeeping and save 18% of all money recieved for the tax bill, the dates when the first self assessment is due and the payments dates.
Also, he gave me the key differences of the year end requirements between being a ST and LTD and their costs. But when I went to register for the UTR is says you have to register for NI contributions Class 4 i think. my question is, is that paid separately or with the Self Assessment in 2025?

Thank You for all your inputs, you all have helped me alot

 

[Paul Kelly ICHYB]

get a free trial of Xero for the bookkeeping

Could be a good recommendation, but overkill/cost for many businesses. There are cheaper/free options out there!

 

[Scalloway]

you have to register for NI contributions Class 4 i think. my question is, is that paid separately or with the Self Assessment in 2025?

Your NI is paid as part of your self assessment tax payment.

 

[Mister B]

Says who? We don't even know what the items are.

Agreed, but AlanJ1 is right to flag this up. Retail arbitrage is not permitted on Amazon and without bonafide receipts from wholesalers, or LOAs from certain brands, suspension will soon arrive.

The OP is quite right to ask questions, too many fail to undertake due diligence and fall at the first hurdle.

 

[Baines Watson]

Hello Everyone, thanks for all your replies. I found an outstanding accountant who gave me lots of the advice I was seeking. He advised me to keep things as simple as possible - which was one of my requirements, to go the Sole Trader route, apply for the UTR, get a free trial of Xero for the bookkeeping and save 18% of all money recieved for the tax bill, the dates when the first self assessment is due and the payments dates.
Also, he gave me the key differences of the year end requirements between being a ST and LTD and their costs. But when I went to register for the UTR is says you have to register for NI contributions Class 4 i think. my question is, is that paid separately or with the Self Assessment in 2025?

Thank You for all your inputs, you all have helped me alot

Lots of good advice by other members already but one thing I would add, get your priorities right, your priority right now should be to identify the products you want to sell and the getting the business model right, not sorting out accounting / tax etc!

You have 6 months from the tax year end in which you start trading as sole trader to register yourself as self employed and sort out the taxes etc. As far as amazon FBA is concerned, all your transactional data will be available in the seller central account once you start trading which you can download and send to the accountant for year end when needed so not a big issue either.

As somebody already said above, test the business idea first and once you have something that is generating revenue and is profitable then worry about accounting / tax etc. Sorting those out for you would not be a major issue for any professional accountant familiar with Amazon FBA once you reach that stage.

We specialize in Ecommerce including Amazon FBA so feel free to reach out if you need any further advice.