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paying tax uk paypal

Discussion in 'BlackHat Lounge' started by webwhizz, Jul 5, 2013.

  1. webwhizz

    webwhizz Power Member

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    just a heads up, if you dont pay tax in the uk and you sell your services via paypal , i can confirm that paypal do pass your earnings on to tax man, i have a summer job and i received tax code br,,,, 20% of wages and they said its because i have 2 jobs, anyway to cut a long story short they sussed my paypal earnings now im getting rinsed for 2 years of no paying tax
     
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  2. blackhatdamo

    blackhatdamo Registered Member

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    Shitter man, the 1 thing to never do is not pay your tax. BUTT claim for everything you can, you can claim back the current market value of your pc if you haven't claimed it back yet, as well as utilities, food, travel, phone, internet etc.. just show its for business use. If you work from home I think you can claim back around 5-10% of ur utilities back.
     
  3. webwhizz

    webwhizz Power Member

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    im working so it keeps me fit but yeh shit pay, it only pays £190 after tax for 48hrs work but i like it, today i got to drive a today Aston martin vanquish 150mph up the m8 in glasgow
     
  4. blackhatdamo

    blackhatdamo Registered Member

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    Sweet :), i just read on another post you've set up a mobile valeting business.
    £190 for 48hours? Is that because they are re-claiming the tax off you? that's crap man.

    But 1 day it'll all be paid and you'll be set, but with the valeting 'gain some expenses' to lower the coming years tax bill.

    Good luck dude
     
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  5. webwhizz

    webwhizz Power Member

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    i do meet and greet for uk airline pilots, man they have some nice cars :)
     
  6. webwhizz

    webwhizz Power Member

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    yeh man its cos of paypal earnings, but with my online earnings i was able to by a van and equipment for my mobile valeting business , but at the moment i haven't declared earnings for that, i just do valeting on my days off, cash in hand mainly , i do 4 days on 4 off, thats why im not on here much these days, busy like a bee
     
  7. webwhizz

    webwhizz Power Member

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    work hard pay hard , i think most people on here are dreamers, they think because they set up a wordpress in 10 mins they gonna be rich, keep dreaming,.,.. life is a game u just have to play it
     
  8. blackhatdamo

    blackhatdamo Registered Member

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    I can imagine they have nice cars with their wages. That's cool investing ur online earnings into something else which is potentially a more stable income (dnt know what u do online).
    Yeah cash in hand is best, Im seriously considering over sea's bank accounts haha.

    Best way to be is busy like a bee :)
     
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  9. blackhatdamo

    blackhatdamo Registered Member

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    Yeah that's true, im still looking for that 1 push automated set for life cash stream hahaha, I'm still looking for the instruction manual for life lol
     
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  10. Dodgy Dexter

    Dodgy Dexter Newbie

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    10 min is to long.
    I want a one click way to a million too.
     
  11. dotcomdesigns

    dotcomdesigns Power Member

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    PayPal notify the HMRC once you hit a certain amount of money received. If you are honest with HMRC they'll be ok to deal with. You'll get a fine (40% usually) plus back dated interest on the income. Mess around with them and they'll go through your financial past for the last 10 years. You'll have to explain every deposit that appears in your bank accounts whether or not they are income earned or not.

    Interesting how they chase the small guy down trying to make a living for a few £100's in unpaid tax but Amazon, eBay, Google and Starbucks get away with paying fuck all tax depsite million pound turnovers in this country...
     
  12. Dodgy Dexter

    Dodgy Dexter Newbie

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    In this instance would it be better to register a ltd in Gibraltar or the like and work it from there?

    If its all online it might not have to be taxed but I'm not sure?

    any ideas
     
  13. webwhizz

    webwhizz Power Member

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    Hi, as soon as i reached 2000gbp mark and paypal wanted id to lifted limits thats when hmrc got involved,

     
  14. blackhatdamo

    blackhatdamo Registered Member

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    So they only got notified then? My paypal has no limits, is verified and is a business account. i have no cash in there :( but if all this came because you needed to lift limits, I wonder if they wouldnt notify hmrc with me?? Although I'd never screw the tax man its not worth it.
     
  15. dotcomdesigns

    dotcomdesigns Power Member

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    It's got nothing to do with limits. It refers to the amount that is received in the account by way of sales of products or services SINCE the account was opened. Basically they go and tell HMRC that Joe Bloggs has taken in excess of £2k in income since he joined PayPal. It doesn't matter whether the account is one month old or 10 years old, verfied, business user or whatever. As soon as £2k has passed through your account the HMRC are notified regardless of circumstances. I expect the whole process is automated.

    HMRC will easily cross reference that to see if it's been declared. If not, a letter will be arriving at Joe Bloggs' house in due course with a please explain. If you can't they'll come to your home to interview you or you can go to a local tax office to be interviewed.