Paypal / Personal account / Business account .

[Hellyeah]

Hi guys ,

I have some confusion here i need some advise .

My business is E-commerce all my customers pays me through my Business Paypal account . Now the tricky part is My business bank account dont provide debit card to be able to link it to my Business Paypal Account. So what i am doing at the moment I linked Paypal with my Personal account's debit card .

I get paid to paypal from customers ------> I Pay expenses and products -------> The remaining fund on Paypal i transfer to my personal bank account and then the EXACT SAME AMOUNT i transfer it to my Business Bank Account . So the withdrawn money that's showing on paypal statement is the exact amount landed in my business bank account. My personal bank account basically is just intermediary .

Will this causes me any kind of issues with HMRC at the end of the Financial year or is it safe to keep it like this ? Also will i be asked for my personal bank account statement also when the financial year is due ?

Please advise if i am doing it wrong and if so what is the best way to do it consedring my business bank account don't provide debit card .

 

[avalanche]

Hi guys ,

I have some confusion here i need some advise .

My business is E-commerce all my customers pays me through my Business Paypal account . Now the tricky part is My business bank account dont provide debit card to be able to link it to my Business Paypal Account. So what i am doing at the moment I linked Paypal with my Personal account's debit card .

I get paid to paypal from customers ------> I Pay expenses and products -------> The remaining fund on Paypal i transfer to my personal bank account and then the EXACT SAME AMOUNT i transfer it to my Business Bank Account . So the withdrawn money that's showing on paypal statement is the exact amount landed in my business bank account. My personal bank account basically is just intermediary .

Will this causes me any kind of issues with HMRC at the end of the Financial year or is it safe to keep it like this ? Also will i be asked for my personal bank account statement also when the financial year is due ?

Please advise if i am doing it wrong and if so what is the best way to do it consedring my business bank account don't provide debit card .

It sounds like you are loaning money to yourself from business paypal and paying it back to the company. Sounds legal but I would make sure all paperworks is covered.

You will probably need to make loan agreements with your company for every withdrawal from paypal. It may theoretically trigger questions in the country of your tax residence.

There should be no requirement to show personal bank statements as long as you pay back the same amount you taken from Paypal

 

[Hellyeah]

It sounds like you are loaning money to yourself from business paypal and paying it back to the company. Sounds legal but I would make sure all paperworks is covered.

You will probably need to make loan agreements with your company for every withdrawal from paypal. It may theoretically trigger questions in the country of your tax residence.

There should be no requirement to show personal bank statements as long as you pay back the same amount you taken from Paypal

Thank you for the advice.

 

[CaptK]

It should be fine with HMRC but your bank won't like it.
Where are you based?
Can you open an EMI?

 

[fshore]

I don't see any problems, but why can't you transfer from PP to the business bank account? You said you've linked your debit card, are you withdrawing to the card? In the UK you can withdraw to a bank account.

 

[Hellyeah]

Because i cant add iban on the PayPal account it allows me only to link debit card. And my business bank account don’t provide debit card.

 

[Spinat]

Why can't you add IBAN account to your PayPal business account? something sounds wrong.

Anyway, what you are doing is fine but it produce extra work for your accounting firm which you may consult to help you to keep the books clean.

 

[fshore]

Because i cant add iban on the PayPal account it allows me only to link debit card. And my business bank account don’t provide debit card.

Where is the bank account and where is the PayPal account?
Maybe you opened the PayPal account in the wrong country.

 

[Hellyeah]

No i made sure paypal account is opened on the right location, it just allows US banks to be linked , i looked in the internet many people have same issue although the paypal matches the country . I even contacted Paypal and they say they dont support iban in many european countries .

 

[fshore]

No i made sure paypal account is opened on the right location, it just allows US banks to be linked , i looked in the internet many people have same issue although the paypal matches the country . I even contacted Paypal and they say they dont support iban in many european countries .

Ok, so then your bank is not in the UK?
If your company, bank and PayPal is in the UK then you can link the bank to PayPal.

 

[Hellyeah]

Ok, so then your bank is not in the UK?
If your company, bank and PayPal is in the UK then you can link the bank to PayPal.

Yeah that the problem Paypal exisit in my location but dont support iban . Thats why at the moment i am using personal bank account debit card to withdraw and transfer same amount to business bank account . Just hope this wont cause me any issues with the HMRC .