eBay/PP accounts in brother's name - HMRC!

[Mooney]

Hey guys it's been a while!
So 3 years ago eBay/PP suspended me and instead of getting a stealth account, i just used my brother's eBay account as it was already established somewhat and his PP's. Annual revenue now is about £70K so has built up quite a bit, i've been declaring as a sole trader to HMRC and paying taxes for this business though i'm worried in HMRC's eyes, my brother is the one who should be paying taxes and potentially evading them. The money has always been withdrawn to my personal bank account and more recently my business bank account, does anyone know if HMRC would be likely to investigate him and could i argue that the money ends with me so i'm liable for the taxes? Would make for an awkward family Christmas if it went south.... Any help would be very much appreciated! :D

[nickopedia]

Not sure about it, but is your brother's HMRC UTR on this PayPal account?

[Mooney]

No he doesn't have a UTR and isn't really involved with the business at all, I have one but it's not linked to the eBay or PayPals!

[nickopedia]

In that case, it's doubtful that PayPal will report this income to HMRC. Aside from that, you are the one withdrawing to your own bank accounts from this PayPal, so as long as you continue to report this income as a sole trader, that's what matters. It's where the money ends up (and with whom) that's important.

[james_112233]

Paypal and Ebay won't report anything to HMRC if anything they are uncooperative and that is why HMRC are coming down hard on eBay etc.

The funds reach YOUR bank account and YOU are paying taxes. That is good enough.

[Mooney]

Thanks very much for your help guys that's immensely reassuring. I was contemplating starting from scratch again for a 3rd time to get around this!

[james_112233]

What I would advise is to make sure you do not exceed the VAT threshold as that is when everything becomes a mess.

[Mooney]

Cool i finished on £65K this tax year and will keep an eye on things for this year. Thanks again

[nickopedia]

The taxable turnover threshold which determines whether a person must be registered for VAT, will remain at £85,000. The taxable turnover threshold which determines whether a person may apply for deregistration will remain at £83,000.

That said, you might also want to consider starting some new stealth accounts to spread out your sales and risk.

Best of luck to you.

[Mooney]

That's a good shout, i feel like after the first time they suspend it's just a matter of time till history repeats itself! Thanks again