my son's idea....

vixen1065

flea72 wrote: »

I know i said buying, but that also means obtaining. selling anything that isnt an item you already own would be classed as business selling. Making items fot resale is the same. You don't own the item already, you are specifically creating it for sale.

Why do you think you are not a business seller, if you are selling things to try and make profit?

I have no objections to him becoming a business seller -
The reason I came on here was to see what advice I could learn in helping him achieve his aim, now.
And his aim it is....If it isn't possible for him to realise his goal now, then maybe he will have to wait until he is 18, & open his own accounts.
I didn't think it would be so difficult - how do those kids on Young Apprentice attain thriving businesses at their minor age???
DMC.

Lagoon

No information to add regarding PayPal, but good luck to your son!

Yorkie1

DeannoDino wrote: »

Grow up!

He can open an account - he doesn't need to shout anything from the rooftops regarding his age, he'll be fine. I've had a Paypal account for 4 years, since I was 17.

If he can verify an account with his bank account - what does it matter that he's 16?

People like you suppress creativity and entrepreneurial spirit.

Although we are asked to be nice to newbies, that goes both ways.

You have recommended fraud. There is absolutely no need to insult someone who told you that that was not a good idea.

If you are prepared to obtain the services of paypal through deceit, that is your lookout. Encouraging others to do the same is generally frowned upon on here.

Savvy_Sue

Personally, I'd encourage him to cost out opening a business account, and keep his stuff entirely separate from the OP's.

As well as the possible tax implications, you also have to keep a 'worst case' scenario in mind. Suppose something catastrophic happens, and the OP ends up claiming means tested benefits: this extra money looks like hers, and it will be no easier to argue that it's not for THAT purpose than it would be for a tax investigation.

jimmo

DeannoDino wrote: »

Sometimes you have to break the rules to do something brilliant.

If you prevent your son from doing this, he's likely to do it behind your back & could get into trouble doing it.

Give him a push in the right direction and stop being so British.

Good luck!

I think there’s a lot of truth in that.

If you allow your son to use your pay pal account and HMRC come sniffing you will be up to your neck in red tape and, if you then have to admit that you lied to pay pal, why on earth should HMRC believe anything you say?

It is often said that a large number of self-made millionaires have been made bankrupt at least once before they made it and, as a parent, you have a choice. Accept the risk you are taking on in facilitating his venture or refuse to accept the risk and leave him to his own devices.

If he lies about his age to pay pal that’s his problem, not yours.

[Deleted User]

DeannoDino wrote: »

Sometimes you have to break the rules to do something brilliant.

If you prevent your son from doing this, he's likely to do it behind your back & could get into trouble doing it.

Give him a push in the right direction and stop being so British.

Good luck!

I also agree. I think there is over kill here!

PayPal business account is free.

Most business bank accounts are free - 2 years.

Simply uypgrade and operate. Register him self employed and provide full detail in self assessment - any questions refer them simply to your strict records.

As long as you don't end up holding onto the money there should be no concern.

Do we really expect HMRC to be interested in you for that amount of money, probably not

I have always used a PayPal business account to sell my personal junk and have never been asked a single question, likewise I have a business (not a big business) and again no questions.

I had my first PayPal account at about 12 and have had about 20 since! Eeekkk

Good Luck- Hope he buys you some nice gifts when he makes his millions

Richie(UK)

assj wrote: »

... Do we really expect HMRC to be interested in you for that amount of money, probably not ...

I can assure you, from first-hand experience, that HMRC have absolutely no concept of materiality whatsoever. They see things in very black or white terms - there is no grey. And there would be no support for the concept of "Sometimes you have to break the rules to do something brilliant."

That said, why not support your son as best you can within the rules? Do as assj suggests and operate accounts in the name of your son and keep records to demonstrate the position to HMRC should they ever ask any questions. Get him off to a good, honest start rather than having to always be looking over his shoulder wondering when his past will catch up with him.

Fire_Fox

vixen1065 wrote: »

Hi all,
Just found the site(first post) & think it is fantastic!!!
Hope you can help me with this one though!
My recently turned 16 year old student son, has had a very entrepreneurial outlook on life since an early age, & rather than work part-time for a pittance for somebody else, dearly wishes to start his own small web based business/registering as self employed etc - both selling on e-bay, & via his own website.
Personally, I'm delighted to see him driven by this goal - & will do anything I can to encourage & support his ambitions.
The snag we have hit is the fact he cant sign up for paypal(his age) as a method of payment.
He suggests using my paypal account as a means of accepting payment - & while I would be perfectly trusting of him, & keeping a good eye on his activity & transferring the proceeds of his sales to his bank account.
Expected turnover is estimated to lower than than tax threshold.
My questions are:

1/. Is this permitted/possible
2/. Would there be any possible tax implications arising out of this for ME????

thanks in advance...
DMC.

He can't have an eBay account until he is 18 because he cannot legally enter into contracts until that age. I presuming you will have to purchase stock in your name for the same reason.

IMO you should ask HMRC the implications of using your PayPal and your eBay accounts, given the restrictions they may deem YOU to be the one trading and your son merely working for your business, it could look like tax evasion.

PayPal accounts need to be 'verified' for some companies to do business with you, this means linking to a current account .... which means you are letting your son have access to that too which your bank may take a dim view to.

"To become a member of eBay, individuals must be at least 18 years of age.

Breaches of this policy may result in a range of actions including:
Listing cancellation
Limits on account privileges
Account suspension
Forfeit of eBay fees on cancelled listings
Loss of PowerSeller status
If you believe another member is underage, please report their user ID using the report link below and include any relevant information. If you have an email from the member, please be sure to include a copy with the full header included.

When eBay members agree to buy or sell items, they are entering into contracts with each other. Throughout most of the world, individuals under the age of 18 are not allowed to enter such contracts. For that reason, eBay does not allow individuals to register as members until they reach the age of 18."
http://pages.ebay.co.uk/help/policies/identity-underage-users.html


"A Special Note about Children

Children are not eligible to use our service and we ask that minors (persons under the age of 18) do not submit any personal information to us or use the PayPal Services."
https://cms.paypal.com/uk/cgi-bin/marketingweb?cmd=_render-content&content_ID=ua/Privacy_full&locale.x=en_GB