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  • Queries as a dropshipping business owner

    So I’m a UK resident planning on starting my dropshipping business soon. My business model is as follows: I acts as an intermediary between customers from all over the world and the vendor(not sure where my vendor is based just yet). The vendor deals with the shipping and handling, I deal with sending orders over to them and the customer service side of things. I know i have to register my business with HMRC – how do I do this and do I register as a sole trader or a plc? My biggest concern is to do with the taxes: From my research, it appears there are three types of taxes I need to pay: Income tax is relatively straightforward – I just want to know when and how often I pay this tax Then there is VAT I read that I only pay VAT(20%) once my income exceeds £85,000. Is this value profit?? Or gross income? However, I can choose to pay VAT regardless– can I just ask what the benefits of this is? I also want to know at what point do I add VAT to my products? and do I essentially charge VAT and give that amount to HMRC? And at what point can I file for VAT charge backs? Finally, there’s customs duty. I know this is 2. 5%. However I’ve read that this does not need to be paid as long as the value of my product is less than £135. I just wanted to confirm this is true I know I’m asking for a lot of help ha ha, but I just want to make sure that I am not at the short end of the legal stick in the future. Thank you in advance