Discussion in 'Ebay' started by Jordy123, Nov 6, 2013.
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.
So how does the HMRC catch them who do bad things?
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.
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.
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?
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.
Separate names with a comma.