Using Paypal for business

[jes]

Hi,

I'd like to set up and use Paypal for online selling but how do get paper statements from them?

TIA
jes

 

[Ruth Mills]

Would it be sufficient to print out an online statement? That would probably be the easiest way if so.

 

[jes]

I had a routine tax inspection about 10 years ago and was told downloaded/printed bank statements were not acceptable, so unless something has changed at HMRC, I don't want to chance it.

thanks
jes

 

[nixnewcastle]

only thing with paypal is that people can get in touch with paypal and get money back and with hold your money if they say something isn't right with what they've bought. Obviously it would be but some people could do it just to rip you off

 

[jes]

Hi, Yes I know about this but can't the same happen with 'ordinary' credit/debit card payments?

I only want to sell vouchers from my website and they'll have unique serial numbers on. This will allow me to void them if somebody, rightly or wrongly, claims a voucher has been lost in the post, try reclaiming their money or any other 'funny business' .

I do hope somebody can give me an answer to this statement problem though. There's plenty of 'serious' retailers on here who can hopefully advise?

TIA
jes

 

[essentia]

I had a trial run with a bookeeper and he wrote all the Paypal transactions down in a spreadsheet even though I had 'print offs' so if you have a lot of transactions it is quite time consuming.

One thing I have found is that it is cheaper to have a card machine and I encourage clients to pay by this rather than Paypal - it can be quite expensive. :hug:

 

[nixnewcastle]

does paypal charge you per transaction?

 

[essentia]

does paypal charge you per transaction?

Yes - they do.

 

[Ruth Mills]

Yes - they do.

Aye - the fees can be quite expensive as well.

 

[Impulse1976]

When i sell products on ebay (sorry guys) and they pay via paypal, i print off the paypal receipt and then mark it as a sale (with the fees deducted) for the item. I hope this is correct in what i am doing. Then when my ebay invoice comes in i print it off and put it down as a monthly transaction for ebay fees. HTH

 

[jes]

When i sell products on ebay (sorry guys) and they pay via paypal, i print off the paypal receipt and then mark it as a sale (with the fees deducted) for the item. I hope this is correct in what i am doing. Then when my ebay invoice comes in i print it off and put it down as a monthly transaction for ebay fees. HTH

Thanks for the reply. Unfortunately I don't believe HMRC will accept receipts/invoices unless you can show where the money has been drawn or deposited i.e. bank statements?

jes

 

[Impulse1976]

Thanks for the reply. Unfortunately I don't believe HMRC will accept receipts/invoices unless you can show where the money has been drawn or deposited i.e. bank statements?

jes

I transfer the money from paypal to my business bank account and print off the receipt and this is filed along with the rest of my seperate business statements.

Or alternatively i use the money to purchase items for my business via my paypal account.

I purchased a few things from Vistaprint and paid via my paypal account, as long as i print off my receipt showing where the money has been paid from it is ok. Paypal is like having another seperate bank account, as long as you can prove where the money comes from and goes out to this is fine. I got told this on a customs & excise book keeping course i went on recently...

 

[jes]

I transfer the money from paypal to my business bank account and print off the receipt and this is filed along with the rest of my seperate business statements.

Hi Thanks,

Now this is exactly why I posted this question . You can keep received money on a Paypal account and it is your choice to pay, as much or as little of it into a 'regular' bank account. Surely HMRC will want to see the Paypal account balance and not what you've decided to pay over into a business account?

TIA
jes

 

[Verve Designs]

I work "virtually" and deal with Paypal every day.

You don't get paper statements.

and you're absolutely right that HMRC can (and have-trust me! ) ask to see Paypal transactions- Luckily every transaction is registered (ad infinitum) and is available as a Excel or CSV download which calcuates the net after Paypals fees. And as I tend to use Paypal to purchase products and pay people it's actually pretty handy to do my accounts with as well in terms of the reports you can run off.

Theres alternatives out there of course, but all of them will take a slice (and some take a monthly fee and or joining fee)

What you've transfered out is irrelevant however really. Like someone else pointed out- its basically an escrow bank account.

 

[jes]

Luckily every transaction is registered (ad infinitum) and is available as a Excel or CSV download which calcuates the net after Paypals fees.

Great, thank you. This is the piece of information that I didn't know about

jes

 

[wowbb]

We are using paypal as payment alternative because some people prefer it and whilst the charges are not small its worth it if you feel that clients would only buy from you if you offer paypal.

We book the payments as paypal receipts and when you pull the money into the account you obviously have to reconciliate the single amounts and charges.

There is a huge difference between paypal payments via a website and paypal in connection with ebay. It is true that as an Ebay seller that accepts paypal the rights are quite minimal and the buyer can pull the money back very easy, but that is different if you offer paypal as payment method directly through your website.

As with everything in business, as long as you can keep everything easily trackable and visible for the accountant and tax office you wont have any problems :O))

 

[fozzyo]

I'm fairly sure HMRC can cope with the concept of Paypal ... it is used everyday by tens of thousands of businesses!

If you are paranoid about tax inspections or want good rates on credit card transactions I would definately suggest you talk to the Federation of Small Businesses. Worth every penny in my book.

Mat