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Tax - parents paypal

Discussion in 'Business & Tax Advice' started by KP100, Jun 25, 2009.

  1. KP100

    KP100 Newbie

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    Right, I'm under 18 and having had my own account limited I decided to get my parent to setup a paypal account with the intention that I operate it.

    An issue that has become apparent is the tax issue. Given that there is money coming into an account in his name, does this mean the money in the account is liable for tax?

    It'd be a damn shame if it were as that is 40% knocked off straight away. If it is this way, anyone care to share ways around it? :)

    Thanks
     
  2. Knoxgates

    Knoxgates Supreme Member

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    If you are in United States then you have to pay tax.
     
  3. TermsB

    TermsB Senior Member

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    Where the hell are you getting your 40% in taxes from? It's more like 15-20% if you don't write off anything.
     
  4. vivalafeva

    vivalafeva Jr. VIP Jr. VIP Premium Member

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    nope, paypal payments are not taxed. Well you legally have to declare any income that you make, so many people declare paypal payments. While many others dont. For a small amount of money I wouldnt worry. Otherwise avoiding the tax man is generally a bad idea.
     
  5. KP100

    KP100 Newbie

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    I'm in the UK though I imagine similar rules apply.
     
  6. KP100

    KP100 Newbie

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    If the income is taxed as my parents it will result in 40% tax as their income is above the threshold (35k or whatever it is). Would the tax man accept the income to the account being declared as mine, even though it is a different name on the account?
     
  7. vivalafeva

    vivalafeva Jr. VIP Jr. VIP Premium Member

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    No they wouldnt, and even if they did, it would probally be worse because your parents couldnt declare you as a dependent of their taxes, which probally gives them some tax breaks.
     
  8. KP100

    KP100 Newbie

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    Ok, thanks for the info.

    With me only bringing in $200 a week, would you suggest I do anything about it or just keep plodding along and not consider tax? ;)
     
  9. loclhero

    loclhero Supreme Member

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    I have no idea what UK tax laws are but if they are anything like the US, your affiliates will send you tax info which you have to claim. Paypal couldn't care fuck all on your tax situation. It's not the money in a paypal account that is taxed, it's the money you've earned by whatever means that got it there.
     
  10. KP100

    KP100 Newbie

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    Sound! Thanks for the info.
     
  11. agatto2

    agatto2 Newbie

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    Have Dad pay you -- you then need to declare that its your pay.

    Keep track of what you spend money on and claim it.

    For instance your bedroom is now your office. There are certain lunch write offs , yada yada . My tax guy finds all sorts of legal write offs -- hes even told me one time i could buy a new ford and write it off cause of some tax incentive for ford that year.

    You could always form an offshore account as well .. Depends on how much money is coming in
     
  12. gimme4free

    gimme4free Executive VIP Jr. VIP Premium Member

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    Being a UK citizen we actually get to skip the tax part with most aff networks, we just declare no US activities and then are expected to do the rest ourselves :)