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Level 5: GrowLesson 15 of 17

Money, records and tax as you grow

Know your real profit, keep records HMRC accepts, claim the right expenses and avoid nasty surprises from a January tax bill, Making Tax Digital or VAT.

  • Checked 28 Sep 2026
  • 11 min read
  • 29 checked facts
  • Part 1 free, 8 parts with the Pass

Tools for this lesson: Side income checkerBox profit planner

This lesson keeps the money side working: real profit, records that stand up if HMRC asks, no January ambush, and the next threshold in view. It builds on Set up properly: hobby, side hustle or business, so start there if you haven't.

Profit is not what lands in your bank

A payout is what's left of a sale after the platform's fees. It doesn't take off what you paid for the piece or the mailer. Your real profit for any period is:

  • Sales: everything buyers paid you, including any postage they paid you
  • minus stock: what you paid suppliers
  • minus selling costs: platform fees, postage you paid for, packaging
  • minus running costs: the business share of your phone, travel for stock and parcel runs

Tax is worked out on profit. But some thresholds in this lesson, including Making Tax Digital (MTD) and VAT, look at turnover: your sales before any costs. Track both.

Money you move to your personal account to live on is called drawings. It's not a business cost, and as a sole trader you're taxed on your profit whether you take it out or not. Things HMRC says you can't claim include: Private purchases, drawings, fines, loan repayments, depreciation.

Reseller Pass

This lesson is part of the Reseller Pass

Part 1 is open to everyone. The other 8 parts of this lesson unlock with the Reseller Pass, along with the full school, every playbook and all 8 tools at full power.

In this lesson

  • 9 parts: part 1 above, 8 more with the Pass
  • 29 checked facts, each with its source and the date we checked it
  • Tools: Side income checker, plus the full box profit planner

The Reseller Pass includes

  • The full Reseller School: 17 lessons in 5 levels
  • All 6 platform playbooks
  • All 8 tools at full power
  • The Starter Pack printables

£19.99 One payment, 12 months of full access, UK only

Or £9.99 added to an order with stock from our shop. Discount codes don't apply to the Pass.

Get the Reseller Pass

12 months, then renew if you want to. No automatic renewal.

No Pass needed for lesson 1, the glossary, and the fee comparer and box planner basics.