Banking and Paypal Problems 21 November 2010 at 3:50PM edited 30 November -1 at 1:00AM in Money Saving Polls 4 replies 1K views

crazycakes

Can someone help me please? My daughter and I make cakes for people, and it's successful enough to have decided to sell these online, via a website that is currently being built for us.

Many people like using Paypal because it's so safe, and I want to use this on our website. However, I'm very keen that would-be customers do not have access to my private email address, so have come up with one for the cake business. BUT! If I open a business account at my bank, I get charged as a business, because they assume I'm making regular money - which I'm not! In 3 months I've only made £50, it's more of a hobby than a money-making business!

Any ideas about how I can get round this please? Thanks!

Gareth_Lazelle

crazycakes wrote: »

Many people like using Paypal because it's so safe, and I want to use this on our website. However, I'm very keen that would-be customers do not have access to my private email address, so have come up with one for the cake business.

So far so good I assume (pretty good practice to have a separate business email address regardless)?

crazycakes wrote: »

BUT! If I open a business account at my bank, I get charged as a business, because they assume I'm making regular money - which I'm not! In 3 months I've only made £50, it's more of a hobby than a money-making business!

Why do you need a business a/c? (I already know why the banks want to sell you one...)

You should be able to transfer monies from your Paypal a/c into any regular bank a/c? Just make sure that you keep good records of what monies you have coming in (or setup a separate non-business a/c for the business),

My Wife has run (small) on-line shops in the past, and the only reason she ever needed a business a/c was to accept credit card payments, but I think you can get around that by using Paypal these days? (money goes into paypal from the customer - you then transfer it wherever you please),

Business a/c are horrendously expensive for new and small businesses, if you can avoid one then I would try - just make extra certain that you keep good records for your taxes!

custardy

you have no need or reason ot get a business account
are you confusing yourself with eBay business accounts?

crazycakes

Thank you for your reply. I think I probably need to talk to someone at Paypal from what you say. Your reply was really helpful, many thanks.

crazycakes

Many thanks for your reply. I think I'll have a chat to Paypal, I probably am getting it wrong somewhere!