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eBay & Paypal - Just a few questions.

Discussion in 'Ebay' started by Jordy123, Nov 6, 2013.

  1. Jordy123

    Jordy123 Registered Member

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    Hey guys.

    My first thread!!! Wooo!!

    First of all I would just like to say I love browsing this forum! Now my questions.

    I have a "Source" were I can buy "Stock" for £10/15 and sell them for £35-40 (good return huh? Especially when I used to shift all my stock 30+ in 2 days). The only problem is I don't wanna get caught by the authorities haha ;).

    Anyways I used to do this but then stopped once I funded enough to get my company started, and now I wanna get back into the game to boost some cash into personal ventures (bare in mind at the rate I was going I was set to make £50k+ a year profit, but I stopped as worried about getting caught)

    But now I am back with a plan!!!! But I wanna run it past ebay/paypal wizards like some people on here haha.

    I have 2 plans:

    1-
    - Create fake / dummie invoices for purchasing theese "things" (But the details of cash and amounts will be the correct for whats spent)
    - Sell items and bank.
    Now is it easy to get away with creating dummie invoices?

    2-
    - Create multiple ebay accounts
    - Create multiple Paypal accounts
    - Sell a few loads on each (Now is there a max amount before the HMRC is involved etc etc?)
    - Withdraw to bank and then withdraw cash and then close paypal and ebay account.

    So tldr; Is it easy to get away with fake invoices from fake suppliers? Also is there a limit on paypal/ebay accounts before HMRC is involved? And would closing the paypal / ebay be a good idea of getting around the blocks in place?

    Any thoughts?
     
  2. AquaticGamer

    AquaticGamer Jr. VIP Jr. VIP

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  3. Jordy123

    Jordy123 Registered Member

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    Yea I hit that the other time, but once I removed the limit on the account I was all set. The fist lot I had to wait like 20 days before I can access my money, and after I verified the account it was all sorted, but what I want to know is once its limit is removed how long do I have before the HMRC is involved with my earnings? Or would it be best to go the 'fake' self made invoice to account for purchasing the stock?
     
  4. mrfred1

    mrfred1 Newbie

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    First of all apologies if my reply offends you in any way but I am somewhat puzzled by your post, first of all you say you have a "source" for goods but are worried about getting caught by the authorities, so is that to imply you are able to get hold of possibly dodgy goods and that that the authorities are of the lawful type ?

    If you legit and can make £50k+ profit why worry as you have a very good business going for you so concentrate on selling more and building the business up, why cock it all up with trying to set up fake accounts etc because if and when the tax man (HMRC) catches up with you he will have you by the short and curlies and can and will put any price tag he likes on you.

    On a more positive note HMRC have enough to do just with the honest businesses and are understaffed and overworked (poor things :) and don't have the resources to chase after Ebayers at the moment.
     
  5. Jordy123

    Jordy123 Registered Member

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    Yes a source for goods, I don't know the FULL details but it is a low risk operation for my supplier, It must be decent money compared to the risk? If they are selling products worth £40 for 10/15 each. Anyways I said at the rate I was selling the goods I was set to make £50k+ (I did some average math based on a few months I was doing this).

    All I want to do is some how run this method either through my company or on the side personally.

    I have narrowed it down to a few plans which I mentioned in the OP. But I am unsure of a few facts; Like does Paypal report you after a certain amount of income? What is the limit on accounts, Is it possible to set up accounts with a fake address but still get the limit removed?


    EDIT: I have also though about buying the products and selling offline at a lower sell price, but that would take ages to sell as finding the people etc would be hard work, but there would be no paper trail which is good!
     
  6. mrfred1

    mrfred1 Newbie

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    I very much doubt that Paypal report you as it is always stressed by HMRC that it is your responsibility to file your own tax returns and can and do get prosecuted for failing to do so and when you hear in the news on occasion that such a company has gone bust etc and had not paid taxes in so many years you begin to understand that they haven't got the manpower to deal with it all.

    Paypal will limit you account at the drop of a hat for any reason they choose, fact. It was highlighted on a recent TV program how a (bricks and mortar) company had the account limited due to the fact that there was an increase in payments made through Paypal during the summer months, the fact that this company sold swimming pools and accessories and that their business only really took off during summer made no difference to Paypal they still imposed the limit even after given the explanation.
     
  7. Jordy123

    Jordy123 Registered Member

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    So how does the HMRC catch them who do bad things?
     
  8. mrfred1

    mrfred1 Newbie

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    Mostly by people with an axe to grind or by the type of people who report listings to Ebay for no reason other than spite, so don't pee anybody off who knows your business.
     
  9. Jordy123

    Jordy123 Registered Member

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    Oh haha, I though there was some sort of trip wire or something among them lines.

    So for instance I squeeze this operation and turn around £50k+ profit a year in a personal account with no questions asked haha? Seems to good to be ture!
     
  10. mrfred1

    mrfred1 Newbie

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    Think about it realistically, not meaning to put you down but you are a very, very small fish in a massive pond, why are they going to single you out, you in the great scheme of things are probably not even worth chasing when they have the likes of well known drug dealers, conmen and rogue financiers to chase after, and Ebay and Paypal are too concerned about avoiding their own tax dues to worry about yours.

    The only time anyone takes note is when large sums of cash are flashed but as you are selling items in a business manner then you are expected to accrue a sum of money, just don't try to pay anything over (I think it is)£9000 into the bank in cash.
     
  11. Jordy123

    Jordy123 Registered Member

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    I suppose that does make sence! Well what about making fake invoices to run the stock through my company rather than personal? Would that be a good idea?

    Also what is the going rate for a 100% feedback / toprated seller ebay account? Haha might as well dump the accounts once used.
     
  12. Methuselah

    Methuselah Regular Member

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    Banks will report large deposits or other suspicious activity to the authorities, as per money laundering laws. They are also required to report to HMRC the amount of interest paid without tax deducted on all accounts (s18 TMA 1970), I'm guessing this is how most people trip the system: large interest payments being reported by the bank but not the individual.

    But I'm not a solicitor, so don't take my word for it.
     
  13. Jordy123

    Jordy123 Registered Member

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    Thanks for your input.

    So perhaps the best way to go would be to either a) Purchase items via the paypal balance (from selling) or b) Withdraw the money on a monthly basis in-line with my current monthly deposits into my bank?
     
  14. Methuselah

    Methuselah Regular Member

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    Yeah, doing it in line with how much money usually goes through your account is sensible. Large deposits are certainly flagged (I don't know the exact figure, but I read it had been lowered to 4k), and a large number of deposits will probably be deemed suspicious too. I think the threshold for interest being reported is £15 interest, so you would probably want to keep beneath that level too, but again I'm not sure exactly how the law stands, or the precise definition of "suspicious."
     
  15. Jordy123

    Jordy123 Registered Member

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    I think I will deposit on a monthly basis and then withdraw it straight out in cash.

    Oh thinking about it! Doesn't paypal offer a card that you can withdraw cash from a ATM straight from your Paypal? If so then bonus lmao. You only get credited interest if you have the money in the account?
     
  16. MadStacks

    MadStacks BANNED BANNED

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    You can effectively be your own supplier by creating a fake website and downloading a standard invoice and fill it our with
    Microsoft word then send it in.