What are UK paypal tax report procedure?

[olekstom87]

Hello! Could not find an answer as no threads like this exist, so most likely they do not report.
Just need to confirm... In UK does paypal issue 1099-like form or in any way limit your usage of paypal without identification? If it does exist, what do you know about it and what the procedure/limits of reporting to revenue agency.
Thank you in advance.

[Ebayorbust]

There is currently no tax reporting on UK Paypal.

The accounts all start off with an annual receiving limit of 2500 euro (approx. £1900). The only way to lift this on a stealth account is submit photo ID and proof of address. This procedure is required to comply with EU money laundering regulations.
You get a request to send in the documents once the account has taken £1650 and the account become fully limited once you hit £1900 (or whatever the amount is based on the euro / GBP exchange rate).

[olekstom87]

Thank you very much for reply! So when sellers here say "receiving limits lifted", they mean this info was already submitted and there's no receiving limit?

[yankee]

Originally Posted by olekstom87

So when sellers here say "receiving limits lifted", they mean this info was already submitted and there's no receiving limit?

That is Correct.

[JamesNorth101]

Originally Posted by olekstom87

Thank you very much for reply! So when sellers here say "receiving limits lifted", they mean this info was already submitted and there's no receiving limit?

That is an EU legislation and doesn't relate to tax.

When an account has the receiving limits removed then in theory you can receive unlimited incoming fund

[olekstom87]

Thank you guys for sharing your knowledge. Appreciated!

[olekstom87]

May I ask you three more questions?
1) do they become really unlimited when "receiving limits lifted"? It looks too good to be true, that like some sellers sell ebay($25000/monthly)/w fully unlimited paypal. So $30k with no control? Or you still hit some sort of limitation at certain point(like usa you hit ~ $2000 and they limit it or you accumulate ~$2000)? What is your exp?
2) does limit work only to receiving? What about sending. Do they limit it if it's unlimited paypal?
3) is it all about pp in uk? Or ebay also chases some reports/identification ?
Thank you in advance!

[e2free]

Nothing is unlimited in paypal, if you receive big amount too quickly they may limit your account or put reserve

You have build slowly, more faster you go more problems you will face