Paypal: Asked to Provide Business Information

BusinessStudent

Hello.

I logged into paypal today and a message came up asking me to 'Provide Business Information'

This is because I have earnt £4,500 in the year and a half of trading on eBay

I am now expected to fil in all these fields on paypal

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Business Type: None Specified

Company Number
(Limited Company only)

Account Holder Date of Birth:

VAT Number:
(optional)

Category:
Subcategory:
Average Transaction Price:
Average Monthly Volume: None Specified
Sales Venue: None Specified
Business URL: None Specified
Percentage of Annual Revenue From Online Sales: -- Choose a Value --
Date Business Established: None Specified

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Is there anything i need to be careful filling out. I dont want to pay tax on my profits etc etc as it is a hobby and i am a student.

princessmoneysaver

I'm sorry but if you are making £4.5k in 18 months for a hobby then you should be paying tax anyway.

jenniferpa

You might not want to pay tax, but you well may be liable. You might want to post this on the tax board as well.

zorber

YvonneCrossland wrote:

I'm sorry but if you are making £4.5k in 18 months for a hobby then you should be paying tax anyway.

Why??????

Just because the sellers turnover is £4500 does not qualify them to start paying tax. They may have only made £500 profit from this which then would not fall in to any earning bracket that you would have to pay tax on.

jenniferpa

Earnt normally equals profit

LULUBELLE_2

You can earn up to £900, before you have to pay tax on a hobby.

Sugar_Coated_Owl

Can I ask what your hobby is?

I think that you should still declare this to the Inland Revenue.

BusinessStudent

I buy things and sell them for a profit, ie look for trends or things that would be profitiable. Ive mostly sold alot of my own things on eBay

princessmoneysaver

Then yes you have to declare it to IR & keep all your receipts to show them when needed.

Sugar_Coated_Owl

BusinessStudent wrote:

I buy things and sell them for a profit

You are therefore operating a business. If you've been doing that for a year and a half then you are tax evading. If someone were to report you, you would be fined for this and perhaps have to pay back money. Were you not aware that you had to pay tax or did you just not want to pay so kept it quiet so to speak?

trencherpilot

Am I wrong in assuming that 4500 includes purchases as well as sales?