I think the line of research you might need to do is as follows: If you earn 85 000+ from you TES shop (look at it as a business - does it bring you £85K+ a year?) then you need to register that as a business doing that much business. Then you'd pay VAT. If you are earning so much from your TES shop, well done! If not, you have two tax options, in simple terms, be a business and be the director - the business pays corporate tax - used to be 20% and you can pay yourself a director's salary but the tax on that money has already been paid by the business (more cheaply than personal income tax which is what, 20some %?). Get an accountant if you are earning on TES. Challenge them - if they can't save you more than you pay them, ask if you don't have to pay them. They will calculate things like the fact that you have to use electricity and heating to produce the resources you sell. And you have to buy pens and a computer and run a mobile phone. Tax Assist is national and set up for small businesses. If not, relax. Consider the other fee that TES takes off like an agent's commission - they have taken the pain out of selling your stuff. Of course, they are going to need to be registered to pay VAT on that, if you are earning £85k+, then they certainly are so of course they need to register and pay their VATs dues - which they do. I'm a real lay person but an accountant made my freelance work much more tax friendly so start there.