Business bank account for online sellers: payouts, currencies and tax

Selling online means money arrives in odd shapes: marketplace payouts net of fees, card payments from your own shop, refunds going back out and suppliers abroad to pay. A business bank account for online sellers gives all of that one home. This guide covers what HMRC now learns from platforms, the currency costs that quietly eat margins, and the VAT points to watch when you import stock.

By the Business Account Review editorial team · checked 25 October 2026 · How we check

Clearing out or running a business?

Before thinking about a business bank account for online sellers, work out whether you're actually trading. Selling your own unwanted clothes or a spare bike is very different from buying stock to resell or making products to sell at a profit.

Probably not trading

Selling personal items you no longer need
One-off sales, such as clearing a loft
Usually selling for less than you paid

Probably trading

Buying goods specifically to resell
Making things to sell, such as candles or prints
Regular listings with the aim of making a profit

If you are trading, GOV.UK's trading allowance guidance says individuals get up to £1,000 a year tax-free. If your gross trading income is over £1,000, you must register for Self Assessment. Our guide to side hustle tax covers this in more depth.

What platforms tell HMRC

Since 1 January 2024, UK reporting rules have required many digital platforms to collect sellers' details and report their income to HMRC. GOV.UK's guidance on selling goods or services on a digital platform explains the main points:

Annual reports. Platforms collect information for each calendar year and send it to HMRC by the following January.
A threshold for goods. Your details are not reported if you make fewer than 30 sales of goods in a calendar year and receive less than 2,000 euros (about £1,700) for them.
You get a copy. Platforms must give you a copy of what they report, showing your earnings for the year minus fees, commission and taxes they deducted, broken down by quarter.
No new tax. GOV.UK says being reported "does not automatically mean you owe tax". Tax depends on whether you're trading.

Here's why that matters for your banking. HMRC may now see a figure for your platform income. If your own records come from a mixed personal account, matching that figure is slow and error-prone. If every payout lands in a business bank account for online sellers, you can line up the platform's copy against your statements in minutes.

Marketplace payouts and your records

Marketplaces usually don't send you each sale as it happens. They collect the customer's money, take their fees, and pay out the balance on their own schedule. So one deposit in your business bank account for online sellers might represent dozens of orders, minus selling fees, payment fees, postage labels and any refunds.

That creates a common bookkeeping trap. If you record only what hits the bank, your sales look smaller than they really are and your fees disappear from view. Your records should show:

Gross sales: What customers paid, before the platform takes anything.
Platform fees: Selling fees, commission, advertising and payment processing taken from your sales.
Refunds: Money returned to customers, which may come out of a payout or be charged to you.
Net payout: The amount that actually reaches your business bank account for online sellers.

Most platforms let you download a payout or settlement report. Keep these with your business bank account for online sellers statements, or connect the platform and your bank to accounting software so both feed in. If you sell on several marketplaces and your own website, use a clear reference for each, so you can tell at a glance which payout came from where.

Your gross sales also feed into Making Tax Digital for Income Tax, which applies to sole traders based on qualifying income before expenses. If you're near the thresholds, see our guide to Making Tax Digital for sole traders.

Currency costs in a business bank account for online sellers

Online selling crosses borders easily, so currency handling is a big part of any business bank account for online sellers. You might sell to buyers in Europe or the US, or buy stock from suppliers in other currencies. Every conversion has a cost, and each business bank account for online sellers charges in a different way. These figures come from each provider's own pages:

Currency costs for a business bank account for online sellers (providers' own pages, checked 25 October 2026)
Account	Paying abroad by card	Receiving other currencies
Tide Free	2.75% fee	Check the fee in the app
Tide Smart (£12.49 a month)	0% fee	Check the fee in the app
Wise Business	Multi-currency card	Account details in 22 currencies; conversion from 0.24%
Revolut Business	Check plan	Exchange 25+ currencies, interbank rate within allowance
Monzo Business	£0	1% conversion fee
Mettle	Not verified	£4 per payment over £10, plus 1.5% conversion

A quick example shows why currency fees matter when you compare a business bank account for online sellers. If you spend £1,000 a month on stock from an overseas supplier by card, Tide's Free plan fee of 2.75% comes to £27.50. That's more than the £12.49 Smart plan, which has no card FX fee. If you receive lots of payouts in euros or dollars, a provider with local account details in those currencies may cost less than converting every payment. Wise charges a one-off 50 GBP set-up fee for its business account, so factor that in too.

Some sellers keep two accounts: a UK business bank account for online sellers for everyday payments, and a multi-currency account for overseas income and suppliers. That's a reasonable set-up if your volumes justify it.

VAT and imported stock

GOV.UK says you must register for VAT if your taxable turnover is more than £90,000. Turnover means sales, not profit, which online sellers with thin margins can reach sooner than they expect. Watching the sales total in your business bank account for online sellers is an easy early warning, though platform reports are more accurate. Our guide to when to register for VAT explains how the threshold works.

If you import stock into Great Britain, import VAT usually applies. GOV.UK's guidance on postponed VAT accounting says a VAT-registered business importing goods for its own business can account for import VAT on its VAT Return, declaring and recovering it on the same return, instead of paying it at the border. You need no approval, but must include your VAT registration number on the import declaration, and postponed imports appear on a monthly statement you can get online.

You may also compete with overseas sellers on the same marketplaces. For goods sold to GB customers in consignments worth £135 or less, GOV.UK says the online marketplace charges and accounts for the VAT at the point of sale. Above £135, normal import VAT and customs rules apply. VAT is complex, so check GOV.UK or speak to an accountant about your own imports.

Choosing a business bank account for online sellers

The right business bank account for online sellers depends on how you actually sell. Weigh up these points:

Count your payouts

Weekly payouts from three platforms is a dozen payments in a month. On Tide's Free plan, payments in count towards the 5 free transfers.

Map your currencies

Note where you sell and where you buy. FX fees can outweigh a monthly plan fee.

Check software links

A bank feed into accounting software makes platform reconciliation much easier.

Taking payments directly

Selling at markets or fairs too? Tap to Pay or a card reader helps. Tide includes Tap to Pay and Payment Links on every plan.

No single business bank account for online sellers suits everyone. To see every option side by side, compare business bank accounts.

New to Tide? Code STARTUP200 can earn up to £200 cashback: £75 after £100 card spend in 30 days, plus £125 for holding £5,000 in an Instant Saver for 30 days*. *T&Cs apply

Open a Tide account

Tide is our featured partner. We may earn commission from referrals. Disclosure

Before you point your payouts at a new business bank account for online sellers, run through this list:

Business bank account for online sellers added as the payout account on every marketplace you use
Payment provider for your own shop pointing at the new account
Supplier payments moved, including any in other currencies
Settlement reports saved each month alongside statements
A pot set aside for tax, and for VAT if you're registered

Online seller banking FAQs

Do I need a business bank account for online sellers if I only sell on one marketplace?

If you're a sole trader, a business bank account for online sellers isn't a legal requirement, but it makes matching platform reports to your records far easier. A limited company needs an account in its own name.

Will the marketplace report me to HMRC?

If you make 30 or more sales of goods, or receive 2,000 euros (about £1,700) or more in a calendar year, your details are likely to be reported. Being reported doesn't automatically mean you owe tax.

Why is my payout less than my sales?

Platforms deduct fees, refunds and sometimes postage before paying out. Record your gross sales and fees, not just the payout into your business bank account for online sellers.

Which business bank account for online sellers suits overseas suppliers?

Look at card FX fees and international transfer costs. On Tide, Smart and above have no card FX fee. Multi-currency accounts such as Wise suit regular foreign-currency trading.

Can I use postponed VAT accounting?

Only if your business is VAT-registered in the UK and the goods are for your business. Check GOV.UK for the details.

Sources

GOV.UK: Selling goods or services on a digital platform (checked 25 October 2026)
GOV.UK: Tax-free allowances on property and trading income (checked 25 October 2026)
GOV.UK: Check when you can account for import VAT on your VAT Return (checked 25 October 2026)
GOV.UK: VAT thresholds, and VAT and overseas goods sold using online marketplaces (checked 25 October 2026)
Tide, Wise, Revolut, Monzo and Mettle pricing pages (checked 25 October 2026)