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Ask Your Own Question, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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We are a partnership. We create and sell (publish) a diary

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We are a partnership. We create and sell (publish) a diary and an advent calendar. We sell to UK shops, on amazon (just to UK) & do fayres etc. We have just filled in our 12/13 partnership tax return. Question 3 says. 'Did the partnership have any foreign income'. On this tax return we said no, as last year we didn't.

However, we are thinking of expanding our amazon sales to sell to Europe and America, but before we do this we want to know what the implications are. I don't understand what 'foreign income' means, on the example it says about having a foreign holiday home, but we will only be selling a few diaries. I've looked on at, 'starting to export' and it seems to say that we need to start doing vat returns. we don't want to do a vat return, last year our net profit was £3886 and we didn't make enough to pay ourselves any money at all as a salary.

Can you enlighten us about what we would be getting ourselves into by selling a few diaries and advent calendars on-line to foreign customers.

Hello, if you have any questions or need further clarification after reading my answer please let me know.


Thank you for your question...


Selling diaries and advent calendars online to foreign based customers will not constitute having foreign income as implied in Question 3 of partnership return. You need not worry about that.


Foreign income includes investment income, bank interest, earnings, rental income etc from abroad.


If your turnover remains below the VAT Registration threshold then you do not have to register for VAT.


VAT registration is required where taxable supplies exceed £79,000 for the previous 12 months or are expected to do so within the next 30 days.



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Customer: replied 3 years ago.

If we sold some diaries to American shops, would that money be classed as foreign income on the partnership tax return?

Christine, thank you for your question...


Any sales to an overseas country would be classified as export sales but still within your UK business income.


Foreign income does not mean income received from sale of goods to foreign customers/countries.


I hope this is helpful.