UK PAyPal Tax Advise

Discussion in 'Business & Tax Advice' started by freeufcdotinfo, Mar 3, 2011.

  1. freeufcdotinfo

    freeufcdotinfo Power Member

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    My brother in law run a biz 50 off line - 50% online - he only pays - declairs TAX for his off line biz-

    Is there amount that paypal send details to HMRC, I heard 200 transactions but could not remember was that a week or month - or year

    He is worried that they may catch up with him....

    So if anyone is paying TAX in UK or if anyone has been trading for years and not paying tax - it would be interesting to hear your input.
     
  2. zebrahat

    zebrahat Jr. VIP Jr. VIP

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    You'll have to review the tax rules for the UK and PP's policy for that country. The 200 transactions issue is a US thing, it may not apply to UK.
     
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  3. stressfree

    stressfree Senior Member

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  4. freeufcdotinfo

    freeufcdotinfo Power Member

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    Thanks for this - any further advise..
     
  5. minimo88

    minimo88 Regular Member

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    can't he ask an accountant?

    or they don't deal with this stuff
     
  6. thesaintv12

    thesaintv12 Junior Member

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    If he is running a business then he should just pay the tax (he can deduct the paypal fees as cost of sales).

    Forget about the loop holes etc when it comes to tax, HMRC are not the kind of people you should hide things from.
     
  7. mainreal

    mainreal Newbie

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    if you are doing business in uk then paying tax is important, so try and clear youself with HMRC.goodluck.
     
  8. blackjack

    blackjack Regular Member

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  9. srb888

    srb888 Elite Member

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    I'm not from UK, but have just read that PP is naming names to the IRS already, and many other countries, even like India, are now putting pressure on PP's jugulars to obtain all information, and UK isn't far behind. PP needs to do its business with all these countries and behind the walls they are all friends. UK policies are extremely strict and under those, everyone skipping the taxes is almost about to fall in their net. So sooner or later your brother-in-law can be in a fix. Why not pay taxes and sleep well?
     
    Last edited: Mar 3, 2011
  10. MattDunbar

    MattDunbar Registered Member

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    Pay taxes, tax evasion is the only thing you can't get away with if heads start turning. There isn't a lot of warrants or protective layers between the IRS or whatever tax agency you deal with there and your bank accounts. There is no denying, there is no illegal search, if you get caught dodging taxes, you're fucked. Also, I don't know too much about UK laws, but at least being here in Canada I would be hiring a lawyer, and having the lawyer employ an accountant. If were talking about serious amounts of money, by having the lawyer supply the accountant they can't be subpoenaed against you.
     
  11. freeufcdotinfo

    freeufcdotinfo Power Member

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    Again thanks for this - backed up what I said to him.
     
  12. zebrahat

    zebrahat Jr. VIP Jr. VIP

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    Just to counterweight all the fraidy cats above, in the US, over 65 million American neither file nor pay taxes each year. The IRS only prosecutes about 2000 people a year for alleged evasion or fraud. Those are the facts. I don't know what the comparable percentages are in the other countries, but suspect they are similar. People vastly over-estimate the reach and activity of the IRS and other tax gestapos. Keep your activity under pseudonym accounts, and (in the US) under $600 per account where you can, and it's unlikely to result in anything.
     
  13. freeufcdotinfo

    freeufcdotinfo Power Member

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    Interesting....

    He only has small biz - approx 300 per week goes through paypal -
     
  14. ba55meister

    ba55meister Registered Member

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    ^ did you manage to find more info on the subject?