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Need to start paying taxes, But how?

Discussion in 'Business & Tax Advice' started by azonlinemarketing, Jul 6, 2016.

  1. azonlinemarketing

    azonlinemarketing Newbie

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    okay,

    So I've been doing reasonably well with my IM ventures recently and I've had a good 6 months of consistent money entering my bank account from PayPal.

    I'm happy to speak to an accountant and start filling tax returns etc. However, none of the Paypal, Fiverr, Flippa, or eBay axxounts are actually in my name!!!?

    Everything is pretty much blackhat using pen names..

    I'm worried this will ring alarm bells with an accountant.

    So if he was to ask me for receipts to prove where the money is coming from, what am I supposed to say?

    I'm from UK btw

    Thanks in advance :)
     
  2. tziahs

    tziahs Jr. VIP Jr. VIP

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    You should still talk to an accountant and get things straight. Maybe you should change your paypal IDs or something else. A good accountant will help you through. I can't imagine he or she would turn you to the police or fiscal authorities. After all, you are willing to pay taxes...
     
  3. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

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    Qh, I thouggt the "AZ" in your name stood for Arizona. If that had been the case, I would've referred you over to one of my clients who runs a CPA firm there.

    Anyway, even though they're not in your name, are any of the PayPal accounts linked to your identity (e.g., bank accounts, business entities, et cetera). I don't know much about taxes in the UK, but perhaps that'll give someone else additional information.
     
  4. RedMango

    RedMango Power Member

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    Do you have a business bank account? Probably not...You will have to be really shit hot with your personal account, and really it's just how much goes in and how much goes out (as business expenses) - just create reports/invoices from all PayPal accounts. Your accountant won't like to sift through all of your personal stuff, but keep all your receipts and invoices from purchases so they can go through as expenses.

    Plus, if you work from home which I imagine you do and say you have 4 rooms which you 'could' use for work, then you can claim 25% (1/4) of your household bills.

    Speak to an accountant, it's not as difficult as maybe I'm making out. It's really quite simple and you can pay a lot less tax that you might think. If you set up a LTD company then you can pay yourself dividends which are taxed at 10%, pay very little wages, let's say you take £12k as wages then you might pay less than a fiver personal tax, but you will have to pay corporation tax. If you have a gf/wife then you can pay them a wage to lower your tax.

    Quick figures:

    12k
    12k wage for the missus
    28k dividends 10% tax
    28k dividends 10% tax

    Total tax over 12 months roughly is £5600 +16k corp tax but probably far less after accountant has dicked about on earning 80k between you. If you're single then stay a sole trader and get an accountant to help with expenses.
     
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    Last edited: Jul 6, 2016
  5. DanDD

    DanDD Junior Member

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    i think you have to hide the people whose names are on the accounts as your employees.
    anyway i believe those are fake name right?
     
  6. spectrejoe

    spectrejoe Jr. VIP Jr. VIP

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    You realize you can change the account name and stuff right? Just do that and for the sites you can't simply send a support ticket.
     
  7. RedMango

    RedMango Power Member

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    It doesn't matter, accountants/HMRC simply look at what cash goes into his bank account and what expenses, and what's left is taxed.

    Having different pen names etc doesn't matter, and technically you could hide those and use a Paypal card and not pay any taxes on that income. It's the money that goes into your UK bank that is taxable. Yes, that's tax fraud and no I don't condone that.
     
  8. MonsterMag

    MonsterMag Power Member

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    Exactly... no one will care what names you received money on as long as you tax it correctly under your name/business. On the other hand, if you do receive money on other names and DON'T tax it under your name and they find out, they'll come after you.
     
  9. RedMango

    RedMango Power Member

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    Can you explain further for the OP and for me?

    I guess the accountant would like to see one PayPal account but technically the OP could set up individual 'businesses' around each PayPal account but then the fact still remains if they're sole traders then the only thing that matters is money into his/her bank account that should be taxed (minus expenses and tax relief).
     
  10. pseudonym

    pseudonym Regular Member

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    accountants dont give a fuck as long as you pay their fees.... you will find out as life goes on ;-)
     
  11. Bleght

    Bleght BANNED BANNED

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    Good accountants would have seen and worked with much shadier stuff than people using fake names on the internet, so this is not a big deal. See an accountant and make sure you're OK with the tax laws and stuff.
     
  12. themoska

    themoska Newbie

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    Don't change anything...just transfer the funds from Paypal to an official bank account and pay taxes (According to accountant instructions)....it is not written anywhere that you can't use someone else paypal to transit money. In addition I doubt tax authority has visibility on ownership of each paypal account.
     
  13. PAY PAL PROVIDER

    PAY PAL PROVIDER BANNED BANNED

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    What kind of business you are running again?
     
  14. themoska

    themoska Newbie

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    if you start asking paypal to change names you risk having the account blocked from them....and money frozen
     
  15. CyberHour

    CyberHour Jr. VIP Jr. VIP

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    Your accountant don't actually need your PayPal name or something, nor your government care who's name is on the paper. What they care about is someone to pay the taxes.
    Talk with your accountant , explain him the situation and boom , you are done.!
     
  16. Delboy2424

    Delboy2424 Regular Member

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    HMRC nor your accountant will be interested in alternative operating names, in effect you are a sole trader at this stage so the basis of liability for taxes exists at the point you have started 'trading'.....its no different than someone running a business via ebay with a nickname account name.

    For the purpose of taxes, effectively you are liable to register as a sole trader once you actively begin to 'trade' irrespective of whether you make money or not.

    I am not sure on your income, but I would suggest you register yourself through the government gateway for self assessment, then do your own books and save on the fees for an accountant, it is essence your accounts will only likely be basic income and outgoings and should be fairly simple.

    Remember if you do make a loss on your 'business' activities and you have a 'day' job, losses can be offset against your personal tax for the year recovered through PAYE.

    Hope this helps.

    Del
     
  17. Visit

    Visit Senior Member

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    lol, that made me laugh, have you tried your local library for more information or maybe hire someone who knows how taxes or even how life works?
     
  18. TheNumbersGuy

    TheNumbersGuy Junior Member

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    Like Delboy2424 said, you do not need to worry about the name of your companies, all the HRMC cares about it being paid like any other tax collection agency. As long as you declare your taxes and pay them the taxes you owe they will not care.

    So if he was to ask me for receipts to prove where the money is coming from, what am I supposed to say?

    An accountant will only ask for access to your Paypal account/other online payment accounts(eg. Skrill)/(deposits in real banks) in order to do the bookkeeping, they should not ask for proof of where the money is coming from, it is assumed you are running a business. You should only need receipts in order to claim expenses, for bookkeeping purposes. If you were to do the bookkeeping yourself you would not need to provide your accountant receipts. Make sure you keep your receipts though in case HRMC audits you, i believe you must keep your receipts for 5 years, although it may be different in the UK than in Canada.
     
  19. RedMango

    RedMango Power Member

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    10 years in the UK.
     
  20. Delboy2424

    Delboy2424 Regular Member

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    Statutory filing is actually only 6 years, it only extends past 6 when in most cases when you either file late or have a compliance audit inspection.