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| StealthHarry | 12-30-2019 01:21 AM |
Paying Taxes UK eBay PayPal Stealth
I’m not sure at all how I should pay tax
I’ve got 4 Bank accounts
Halifax / NatWest / RBS and TSB
Halifax / NatWest and RBS I have basic accounts everyday savers and the money goes in to them from PayPal
TSB is for general use mainly withdrawing cash as I can’t from RBS due to have savers only
So Yh how am I supposed to pay tax - I want it paid properly and professionally so HMRC don’t review or check me
I’ve made about 50k this year
Thank you all |
| zamzam | 12-30-2019 06:31 AM |
Re: Paying Taxes UK eBay PayPal Stealth
Best to talk to an accountant
But it should just be a case of adding up all your income and then filing self assessment and paying what is due |
| JamesNorth101 | 12-30-2019 07:10 AM |
Re: Paying Taxes UK eBay PayPal Stealth
It’s just a simple case of adding up the income and filling in your self-assessment |
Re: Paying Taxes UK eBay PayPal Stealth
All set OP :) nice advice given |
| JamesNorth101 | 12-30-2019 08:27 AM |
Re: Paying Taxes UK eBay PayPal Stealth
Quote:
Originally Posted by tinsoldier
(Post 1058198)
If you're self employed you pay pay tax on profit, not income.
(VAT is based on income but at 50k OP doesn't need to worry about that.)
My advice to OP would be to employ an accountant to calculate their profits and submit their self-assessment annual return on their behalf. Costs are reasonable and they benefit from an accountants knowledge in offsetting all benefits and allowances they can take advantage of and, as OP has intimated, keep HMRC off your back.
It's because of the latter that I use a Chartered Accountant, I've never had a single submission questioned - they're trusted by HMRC.
| Naturally but by income I assume costs have been removed. It wouldn't really be an income otherwise it would be total sales.
Until 85K in trading is done the VAT doesnt really apply
Its certainly possible though that OP is saying he has had 50k in profit with 150k in sales in which case VAT does come into play so certainly worth OP being aware of |
| doofy01 | 12-31-2019 03:20 PM |
Re: Paying Taxes UK eBay PayPal Stealth
Quote:
Originally Posted by StealthHarry
(Post 1058139)
I’m not sure at all how I should pay tax
I’ve got 4 Bank accounts
Halifax / NatWest / RBS and TSB
Halifax / NatWest and RBS I have basic accounts everyday savers and the money goes in to them from PayPal
TSB is for general use mainly withdrawing cash as I can’t from RBS due to have savers only
So Yh how am I supposed to pay tax - I want it paid properly and professionally so HMRC don’t review or check me
I’ve made about 50k this year
Thank you all
|
Create a new business account with one of your banks, i would recommend nat west.
keep withdrawing from paypal as you are to your normal accounts the transfer the withdrawals to the new business account.
make all purchases and expenses from you business account. and let accountant do the rest.
not sure if thats the best way to do it but works for me. |
| RipeBanana | 12-31-2019 06:04 PM |
Re: Paying Taxes UK eBay PayPal Stealth
Since you are running Stealths, why are you afraid of HMRC?
I was chatting in DMs with someone from this forum. He said hes been stealthing for 8 years or so without issues, and is not worried about taxes.
How can HMRC find you?
Should you really be worried if you are running stealths?, someone give me a reason. |
| doofy01 | 12-31-2019 09:11 PM |
Re: Paying Taxes UK eBay PayPal Stealth
Quote:
Originally Posted by RipeBanana
(Post 1058503)
Since you are running Stealths, why are you afraid of HMRC?
I was chatting in DMs with someone from this forum. He said hes been stealthing for 8 years or so without issues, and is not worried about taxes.
How can HMRC find you?
Should you really be worried if you are running stealths?, someone give me a reason.
| If you are withdrawing your paypal funds to your personal bank account then its not a good idea to ignore HMRC.
Whilst you may remain undetected by them for many years, they can spring up on you at any time! |
| StealthHarry | 01-01-2020 01:26 AM |
Re: Paying Taxes UK eBay PayPal Stealth
Do I need to be a limited company in order to create a business bank with NatWest
I’m thinking of opening the account whenever and paying the taxes stuff by April
Thanks |
| RipeBanana | 01-01-2020 05:34 AM |
Re: Paying Taxes UK eBay PayPal Stealth
Quote:
Originally Posted by StealthHarry
(Post 1058540)
Do I need to be a limited company in order to create a business bank with NatWest
I’m thinking of opening the account whenever and paying the taxes stuff by April
Thanks
|
What sort of accounts do you have on ebay? private or business? |
| doofy01 | 01-01-2020 05:45 AM |
Re: Paying Taxes UK eBay PayPal Stealth
Quote:
Originally Posted by StealthHarry
(Post 1058540)
Do I need to be a limited company in order to create a business bank with NatWest
I’m thinking of opening the account whenever and paying the taxes stuff by April
Thanks
| Does not have to be a limited company to have a business account. |
| yellowprintdirect | 01-02-2020 11:05 AM |
Re: Paying Taxes UK eBay PayPal Stealth
Quote:
Originally Posted by doofy01
(Post 1058557)
Does not have to be a limited company to have a business account.
| I think it dose as they require a companies house number |
| JamesNorth101 | 01-02-2020 11:06 AM |
Re: Paying Taxes UK eBay PayPal Stealth
You can usually open business accounts as a sole trader but you’d have to talk to the bank to find out exactly what the requirement is |
| yellowprintdirect | 01-02-2020 11:16 AM |
Re: Paying Taxes UK eBay PayPal Stealth
Quote:
Originally Posted by tinsoldier
(Post 1058807)
Nope, you can have a business account in your personal name ( you pay tax as an individual if you're a sole trader after all) or you can have it in the name of your company i.e. John Smith T/A ebayseller.
You can legally use a personal bank account for your business, its actually the banks that are reluctant to encourage this as they cant charge the same level of fees.
| Last time I looked at NatWest they wanted a companies house number. |
| yellowprintdirect | 01-02-2020 11:21 AM |
Re: Paying Taxes UK eBay PayPal Stealth
Quote:
Originally Posted by tinsoldier
(Post 1058810)
Look again, you're mistaken.
| Ok....no worries |
| JamesNorth101 | 01-02-2020 11:21 AM |
Re: Paying Taxes UK eBay PayPal Stealth
Quote:
Originally Posted by yellowprintdirect
(Post 1058808)
Last time I looked at NatWest they wanted a companies house number.
| I am 99% certain that you can open them up as sole traders without an issue with NatWest but why don’t you just give them a quick phone call and they will be able to clarify for you |
| homeless | 01-15-2020 06:37 AM |
Re: Paying Taxes UK eBay PayPal Stealth
To open a business account is quite simple and no you do not need to be a company. You speak to your bank and say you are self- employed (Sole Trader) looking to open a business account. They will ask you simple questions such as:
1. What type of work you do
2. How much do you think you will make per week/month/year
3. few other personal questions
You can register your business banking as your own name as a sole trader. For example if your name is John Doe then you tell your bank I will keep my own name.
To open a business account you can do it online via your bank website and they will arrange to call you to confirm your application and ask you few questions such as ones I listed above.
However....... If you are running 4 Stealths I believe it may be difficult to declare things to HMRC. If they send someone to look at your accounts in future then how will you be able to prove this money is yours? They can assume you are laundering money if your accounts are of different names.
When you file your taxes to HMRC how will you send them invoices, accounts that belong in differrent names? They will reject it and investigate you.
Business Banking requires true accurate accounts. Invoices, Sales, Purchasing should all be in your name otherwise an accountant will find it difficult to take on such work. Accountants cannot lie and jot down false information as it can lead to jail term.
There are loopholes!! You just need to find a good system if you decide to register HMRC. |
| yellowprintdirect | 01-17-2020 02:10 AM |
Re: Paying Taxes UK eBay PayPal Stealth
Quote:
Originally Posted by homeless
(Post 1062050)
To open a business account is quite simple and no you do not need to be a company. You speak to your bank and say you are self- employed (Sole Trader) looking to open a business account. They will ask you simple questions such as:
1. What type of work you do
2. How much do you think you will make per week/month/year
3. few other personal questions
You can register your business banking as your own name as a sole trader. For example if your name is John Doe then you tell your bank I will keep my own name.
To open a business account you can do it online via your bank website and they will arrange to call you to confirm your application and ask you few questions such as ones I listed above.
However....... If you are running 4 Stealths I believe it may be difficult to declare things to HMRC. If they send someone to look at your accounts in future then how will you be able to prove this money is yours? They can assume you are laundering money if your accounts are of different names.
When you file your taxes to HMRC how will you send them invoices, accounts that belong in differrent names? They will reject it and investigate you.
Business Banking requires true accurate accounts. Invoices, Sales, Purchasing should all be in your name otherwise an accountant will find it difficult to take on such work. Accountants cannot lie and jot down false information as it can lead to jail term.
There are loopholes!! You just need to find a good system if you decide to register HMRC.
| You’re only using stealth for eBay & PayPal. Never lie to the bank as that’s fraud. Always give your real details to the bank. PayPal can’t access your real info only last 4 digits of your bank. Regards to adyen when that comes coz it’s a company eBay business shall we say. Adyen will want to see a bank statement with company name & address that will need to match the company name & address of your eBay account. They won’t need to see the person name of the eBay or business bank account. As coz it’s a business bank it will only have the company name on top. |
| Freakzilla | 01-17-2020 04:08 AM |
Re: Paying Taxes UK eBay PayPal Stealth
How would HMRC see what names the stealth accounts are in? The money would just be in the bank accounts. Just add all the money up. Simples! Quote:
Originally Posted by homeless
(Post 1062050)
To open a business account is quite simple and no you do not need to be a company. You speak to your bank and say you are self- employed (Sole Trader) looking to open a business account. They will ask you simple questions such as:
1. What type of work you do
2. How much do you think you will make per week/month/year
3. few other personal questions
You can register your business banking as your own name as a sole trader. For example if your name is John Doe then you tell your bank I will keep my own name.
To open a business account you can do it online via your bank website and they will arrange to call you to confirm your application and ask you few questions such as ones I listed above.
However....... If you are running 4 Stealths I believe it may be difficult to declare things to HMRC. If they send someone to look at your accounts in future then how will you be able to prove this money is yours? They can assume you are laundering money if your accounts are of different names.
When you file your taxes to HMRC how will you send them invoices, accounts that belong in differrent names? They will reject it and investigate you.
Business Banking requires true accurate accounts. Invoices, Sales, Purchasing should all be in your name otherwise an accountant will find it difficult to take on such work. Accountants cannot lie and jot down false information as it can lead to jail term.
There are loopholes!! You just need to find a good system if you decide to register HMRC.
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