Won’t Managed payment red flag my bank

[kane lynch]

Hello just wondering when managed payment is being used will it not red flag bank accounts? Because then the banks can see the eBay transactions.

[JackFrost]

Don't really understand why it would flag the bank account?

If you have means to escape tax, then yes.

[kane lynch]

Originally Posted by JackFrost

Don't really understand why it would flag the bank account?

If you have means to escape tax, then yes.

I have heard if u keep big funds in there it red flags it. And I pay my tax.

[JackFrost]

Originally Posted by kane lynch

I have heard if u keep big funds in there it red flags it. And I pay my tax.

If you pay the tax on the amount held in the bank account there shouldn't be anything to fear.

[brassmonkey]

Are you talking about a business bank account or personal?

If personal then they may flag if there is lots of money going in and out the account every day.

[JackFrost]

Originally Posted by brassmonkey

Are you talking about a business bank account or personal?

If personal then they may flag if there is lots of money going in and out the account every day.

He says he pays tax on it which implies the amount is sufficient enough to be taxed, so most likely it is a business account, therefore no issues.

[kane lynch]

Originally Posted by brassmonkey

Are you talking about a business bank account or personal?

If personal then they may flag if there is lots of money going in and out the account every day.

No not a business account it’s a personal account and yes there will be lots of funds coming in and going out. I did ask eBay today about this and they said no I’m not sure what should we do.

[brassmonkey]

Originally Posted by JackFrost

He says he pays tax on it which implies the amount is sufficient enough to be taxed, so most likely it is a business account, therefore no issues.

Could be a sole trader with a personal account, but if it is a business account then there will be no issues.

[kane lynch]

Originally Posted by brassmonkey

Could be a sole trader with a personal account, but if it is a business account then there will be no issues.

So do you recommend I should open up a business bank account?

[brassmonkey]

Originally Posted by kane lynch

So do you recommend I should open up a business bank account?

If you are going to have big amounts going in and out everyday then yes.

Saying that I used a personal bank account for years as a sole trader with £10k going in a month without issue.

[kane lynch]

Originally Posted by brassmonkey

If you are going to have big amounts going in and out everyday then yes.

Saying that I used a personal bank account for years as a sole trader with £10k going in a month without issue.

I don’t have funds coming in everyday though. If I get sales and sometimes I make £500 in a day from eBay sales which I think it’s to risky in a bank so if I keep My bank as personal am I ok to keep 10k in there?

[CaptainComedown]

Surely you can keep as much money as you want in your bank accounts? My two main bank accounts have plenty of funds in them and nobody has ever questioned it

[brassmonkey]

You can keep as money as you like in there but if the bank sees large transactions daily they may assume you are using it for business which you are not supposed to do with a personal bank account.

[jonnytidd]

I’m using a normal account for both I ain’t ever had any problem from the bank but then I do submit A self employed tax return every year

[kane lynch]

Originally Posted by CaptainComedown

Surely you can keep as much money as you want in your bank accounts? My two main bank accounts have plenty of funds in them and nobody has ever questioned it

Are the bank accounts set as personal use or business?

[kane lynch]

Originally Posted by jonnytidd

I’m using a normal account for both I ain’t ever had any problem from the bank but then I do submit A self employed tax return every year

Yes obviously I’ll pay tax if eBay accepts multiple accounts under one bank name.