[Question] PayPal Business UK and IRS

[decanl]

Hey guys as I am quickly approaching the 20,000$ thresholds what will happen if I don't have an actual business documentation for taxation?
I have already PayPal UK Business Account and it's all verified ( I didn't provide taxpayer documentation as it wasn't required to do it)
What is the process of all this?
Is there ways around-it (not creating new account)?
What if I am not a TaxPayer?


In order for PayPal to satisfy its information reporting obligations under IRS rules and regulations, we require that PayPal account holders (globally) who approach the applicable thresholds ($20,000 USD and 200 transactions) set by the IRS verify their U.S. tax status either by completing a certificate of foreign status or providing a US taxpayer identification number (TIN).
[ https://www.paypal.com/uk/smarthelp...-ben-e)-why-do-i-need-to-provide-this-faq3831 ]

 

[red333]

So I only use PayPal as a receiving option and every time I have money on my PayPal I transfer it to my bank account, but I´ve had this "problem" as well and it required me to verify myself again.

They wanted a driver license pic and some other pictures (even thought I´ve provided them a couple of times before).
Everything went fine and I can still use my PayPal.

Yes, they sometimes annoy with their "security" aspects, but hey, at least we have a platform to send and receive money

 

[decanl]

So I only use PayPal as a receiving option and every time I have money on my PayPal I transfer it to my bank account, but I´ve had this "problem" as well and it required me to verify myself again.

They wanted a driver license pic and some other pictures (even thought I´ve provided them a couple of times before).
Everything went fine and I can still use my PayPal.

Yes, they sometimes annoy with their "security" aspects, but hey, at least we have a platform to send and receive money

Yup that's what I do right now, transfering all the received money to my bank account so its in safe place, atleast if I get limitations or something in those lines.
So basically what you are saying, they will ask for another proof of ID? If so then I shouldn't be worried, but if they will ask for Taxpayers ID then im basically fuckd and I have to create a new account right?

Also as I read that IRS thing is mostly for USA, so how does it affects us in UK?

 

[red333]

Yup that's what I do right now, transfering all the received money to my bank account so its in safe place, atleast if I get limitations or something in those lines.
So basically what you are saying, they will ask for another proof of ID? If so then I shouldn't be worried, but if they will ask for Taxpayers ID then im basically fuckd and I have to create a new account right?

Also as I read that IRS thing is mostly for USA, so how does it affects us in UK?

Sorry, with IRS I don´t have a single clue, I live in Germany, and they´re fucking rough with everything concerning taxes, etc.

Well, I entered my taxpayers ID (I think, but not sure), but PayPal doesn´t force you to pay taxes / charges more fees.
You still have a personal PayPal acc and what you do with your money is your thing, if you don´t pay taxes it isn´t their problem.

 

[decanl]

Thank you for replies man.

Is there anyone from UK who can advise me?

 

[red333]

Thank you for replies man.

Is there anyone from UK who can advise me?

No Problem!

But you´re 18+ and have all the necessary documents such as license, passport, etc.?
Just transfer it to your bank account if your money is in no need on your PayPal.

And if they want your tax ID, why don´t provide it to them?
Do you have a problem /w it?

 

[ExperimentalSEO]

You need to register as self employed.

https://www.gov.uk/working-for-yourself

And file the certificate.

https://www.irs.gov/forms-pubs/form...icial-owner-for-united-states-tax-withholding

 

[andyframpton]

Why would PayPal want you tax details?
The government makes you pay tax not PayPal.
The only thing they will use it for it security verification.

 

[Stavro]

The government makes you pay tax not PayPal.

The IRS forces PayPal report the income. Without that tax information, PayPal cannot report it, and they cannot legally continue handling the money.

https://www.paypal.com/us/smarthelp/article/how-does-paypal-report-my-sales-to-the-irs-will-i-receive-a-1099-tax-statement-faq729

 

[dotc0m]

Another tax thread

You do realize this is bad for SEO...

In b4 the tax feds come in and start doing audits on BHW members...