E-Commerce Retailer (Ltd Company)Tax Deductions: Inventory (adjusted for closing stock), Meta/Google ads, Shopify fees, and 3PL warehousing are fully deductible against Corporation Tax. Compliance: You must apply the reverse charge mechanism on UK VAT returns for digital advertising services provided by non-UK entities (e.g., Meta/Google). All records must be strictly digital per MTD rules. Audit Triggers: Unexplained gross margin fluctuations or VAT repayment claims during periods of declining turnover. Optimization: Use the Annual Investment Allowance (AIA) for equipment and make employer pension contributions to reduce taxable profit without incurring Employer National Insurance.