1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

UK PAyPal Tax Advise

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

  1. freeufcdotinfo

    freeufcdotinfo Power Member

    Joined:
    Jun 12, 2008
    Messages:
    685
    Likes Received:
    155
    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 Elite Member

    Joined:
    Aug 6, 2008
    Messages:
    2,350
    Likes Received:
    2,890
    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.
     
    • Thanks Thanks x 1
  3. stressfree

    stressfree Senior Member

    Joined:
    Aug 28, 2007
    Messages:
    1,116
    Likes Received:
    233
    read 2012 it was going to be a UK thing as well. Don't worry petrol will be £30 a gallon by then and tax wil lbe a simple 100% on all profits....so no need to worry aobut living soon!
     
  4. freeufcdotinfo

    freeufcdotinfo Power Member

    Joined:
    Jun 12, 2008
    Messages:
    685
    Likes Received:
    155
    Thanks for this - any further advise..
     
  5. minimo88

    minimo88 Jr. VIP Jr. VIP Premium Member

    Joined:
    Dec 23, 2009
    Messages:
    494
    Likes Received:
    131
    Location:
    United Kingdom
    can't he ask an accountant?

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

    thesaintv12 Junior Member

    Joined:
    Mar 9, 2010
    Messages:
    142
    Likes Received:
    23
    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

    Joined:
    Feb 3, 2011
    Messages:
    37
    Likes Received:
    0
    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

    Joined:
    Nov 23, 2007
    Messages:
    276
    Likes Received:
    51
    Your brother-in-law is breaking UK Tax Law big time. This would be consider fraud under HMRC rules.

    He should better get an accountant and start saving for taxes. There is £100 penalty for each month for unpaid taxes and also this he will be fined for not declaring his income.

    It is not just Paypal he needs to worry about, his bank will notify HMRC under Money Laundering Rules in UK. It is better to pay these taxes ( or reduced taxes if he can get a good accountant) than facing charges for tax evasions.
     
  9. srb888

    srb888 Elite Member

    Joined:
    Jul 30, 2008
    Messages:
    3,260
    Likes Received:
    5,067
    Gender:
    Male
    Occupation:
    WebzSurfer
    Location:
    Sun, Mon, Tue, WTF, Sat!!! :)
    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

    Joined:
    Oct 2, 2008
    Messages:
    72
    Likes Received:
    31
    Occupation:
    Social Media Consultant & Developer
    Location:
    Toronto, ON, Canada
    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

    Joined:
    Jun 12, 2008
    Messages:
    685
    Likes Received:
    155
    Again thanks for this - backed up what I said to him.
     
  12. zebrahat

    zebrahat Elite Member

    Joined:
    Aug 6, 2008
    Messages:
    2,350
    Likes Received:
    2,890
    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

    Joined:
    Jun 12, 2008
    Messages:
    685
    Likes Received:
    155
    Interesting....

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

    ba55meister Registered Member

    Joined:
    Mar 4, 2011
    Messages:
    57
    Likes Received:
    8
    Location:
    UK
    ^ did you manage to find more info on the subject?