Can I use Pay Pal as My Business Account

CharlieCharles_2

Hi
I sell online digital products.

All money I receive is from pay pal payments.
All payment I make are using pay pal

I have a business account that I hardly use.

So I need a business bank account.
Can I stick to only using pay pal as my business account?

Many thanks for your help

Best Regards
Charles

thenudeone

AFAIK, to use paypal as a business, you must have an active current account which accepts direct debits, so you couldn't use it alone.

Also, you will occasionally need the facilities of a normal current account. For example you can't pay tax or national insurance from a paypal account.

Gleeful

If you can get a Paypal Access card, you can pay Tax and NI online using it

mikey_l

I would recommend against this. PayPal can't offer the same levels of service a dedicated bank and business relationship manager can offer.

Also, keeping large amounts of money in PayPal is risky. As routine security, they can place withdrawal limitations on accounts for any reason that they deem as being out of the ordinary. This could potentially cause you cash flow issues and other problems.

Finally, there may be times when you want to expand your business by selling on a larger scale or to different markets. Potential customers may be put off by the fact that you don't accept more traditional forms of payment, such as cheque or bank transfers in a company name.

Archi_Bald

mikey_l wrote: »

Potential customers may be put off by the fact that you don't accept more traditional forms of payment, such as cheque or bank transfers in a company name.

Most definitely. I often shy away from places that only offer payment by Paypal.

Also, if you want to use Paypal for business, you need a chargeable Paypal Business account.

Aquamania

CharlieCharles wrote: »

Hi
I sell online digital products.

All money I receive is from pay pal payments.
All payment I make are using pay pal

I have a business account that I hardly use.

So I need a business bank account.
Can I stick to only using pay pal as my business account?

Many thanks for your help

Best Regards
Charles

Well I never knew HMRC accepted paypal

But have a look at what you do use your business account for. I'm sure you can then decide whether or not you actually need it.

Gleeful

Aquamania wrote: »

Well I never knew HMRC accepted paypal

But have a look at what you do use your business account for. I'm sure you can then decide whether or not you actually need it.

HMRC don't accept Paypal but they accept Mastercard. I have a Paypal Access Card which is a Mastercard.

I pay my tax using it online with HMRC