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Banking and Paypal Problems

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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!

Comments

  • Gareth_Lazelle
    Gareth_Lazelle Posts: 110 Forumite
    edited 22 November 2010 at 9:17AM
    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!
    - GL
  • custardy
    custardy Posts: 38,365 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    you have no need or reason ot get a business account
    are you confusing yourself with eBay business accounts?
  • 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.
  • Many thanks for your reply. I think I'll have a chat to Paypal, I probably am getting it wrong somewhere!
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