PayPal and revenue

Spark1zz · 27-02-2020 5:57pm #1

Hello guys, I have online store and selling serial keys about few months, started around 2019 10, most of my customers use PayPal to pay for the products (Serial keys). In all that time I made about 3,500 EUR profit, didn't touch money in my PayPal yet. I use revolut as bank, it's mobile banking. Now there is question, do really paypal report all that to revenue? If yes, what I should do in this case? Register it as additional income, also there is deadline until I should register it? If I will register it as additional income, does it affect other things, like salary?

Also I tried to apply for RAN number in ROS, but got error "Either the tax type you have entered is not valid for this registration number or you have entered the registration number incorrectly. It can take up to 3 working days for new tax types or registration numbers to fully update so that you can complete this step.Please note that a PAYE registration number is not valid for ROS. ROS services are available for self-assessed taxes, business taxes or reporting obligations." I'm pretty sure that I typed right PPS number, checked it few times."

Sorry for bad english, It's not my first language.

Calahonda52 · 28-02-2020 3:46pm

Whether Paypal report it os not the issue from a self assessment for tax purposes.
Are you saying that if Paypal don't report it , you won't declare it as revenue under self assessment, you will just file a fraudulent tax return.
Is that the question?

jimmy86 · 28-02-2020 3:54pm

**Apologies, edited

As far as I know you can earn €5000 non paye income without having to register for self assessment. You can declare it on additional income on your tax return.

DankeyKang · 28-02-2020 4:01pm

jimmy86 wrote: »

As far as I know you can earn €5000 non paye income tax free per year. You can declare it on additional income on your tax return.

That is not true.

28-02-2020 4:02pm

You can't register for ROS unless you 1st register for income tax. You can register for income tax online via my account or ring revenue and they will help

As said above if you make less than €5000 profit from something on the side you don't have to register for ROS. You can just declare it via my account. This is the easiest way. It may not be tax free though. That depends on how much you earn elsewhere.

Spark1zz · 28-02-2020 9:02pm

So If I make less than 5,000 EUR I should be good? Also I don't need ROS for that, right?

There is another thing, I never had any Irish customers, does that change anything? Also website registered in different country, under different name. I'm not trying to avoid that, I'm just trying to get information about it, to make sure 100%.

relax carry on · 28-02-2020 10:14pm

Spark1zz wrote: »

So If I make less than 5,000 EUR I should be good? Also I don't need ROS for that, right?

There is another thing, I never had any Irish customers, does that change anything? Also website registered in different country, under different name. I'm not trying to avoid that, I'm just trying to get information about it, to make sure 100%.

It's quite simple, if you earn non PAYE income then you need to declare it here if you are tax resident here. If your taxable profit for the year is over 5000 euro you use a form 11 via ROS. If it's under 5000 then you use a form 12 via Myaccount to declare it.

Spark1zz · 29-02-2020 5:43pm

Which one should I choose to declare my paypal balance, under 5,000 EUR

29-02-2020 6:52pm

Spark1zz wrote: »

Which one should I choose to declare my paypal balance, under 5,000 EUR

I would go for trading profit or professional income.

Sleeper12 · 29-02-2020 7:07pm

You can earn up to 5k in a side business without having to do propper accounts. Obviously you still have declare it to revenue & pay any taxes due. The big thing here is not having to file accounts. This saves you a lot of hassle and there is no need to engage an accountant or book keeper

Spark1zz · 29-02-2020 7:58pm

Finally did it! Thanks for help

But the thing is I earned more than 5k per year, but it's not profit, because I pay 30% for the product, then sell it. So it's below 5,000 if I count my profit.

Sleeper12 · 29-02-2020 8:02pm

Spark1zz wrote:

But the thing is I earned more than 5k per year, but it's not profit, because I pay 30% for the product, then sell it. So it's below 5,000 if I count my profit.

Your turnover is over 5k not your earnings. If you were selling goods your turnover could be 20k yet your earnings /profit could be under 5k.

Spark1zz · 29-02-2020 8:06pm

Sleeper12 wrote: »

Your turnover is over 5k not your earnings. If you were selling goods your turnover could be 20k yet your earnings /profit could be under 5k.

So I'm good with that I declared additional income as trading profit?

Sleeper12 · 29-02-2020 8:22pm

Spark1zz wrote:

So I'm good with that I declared additional income as trading profit?

I'm self employed so I know a fair bit but I'm not an accountant. Plenty of posters can answer this better than me but what you did sounds right to me

29-02-2020 8:44pm

Spark1zz wrote: »

So I'm good with that I declared additional income as trading profit?

From experience this is correct. Your trading profit after allowable expenses are deducted from turnover is declared.

Plenty of stuff on the revenue website on what is and isn't allowed. No need to keep accounts but a simple income and expenses sheet showing where you came up with the figure would be required if you were ever checked. You need it anyway to come with the figure in the first place

Spark1zz · 29-02-2020 8:58pm

Deleted User wrote: »

From experience this is correct. Your trading profit after allowable expenses are deducted from turnover is declared.

Plenty of stuff on the revenue website on what is and isn't allowed. No need to keep accounts but a simple income and expenses sheet showing where you came up with the figure would be required if you were ever checked. You need it anyway to come with the figure in the first place

When they asked me to type annual profit, I typed 5,000, because I expect that profit in the year, I can't really know exact profit, because every time it's different. But it's up to 5,000

Spark1zz · 29-02-2020 9:24pm

Also should I start calculating that from this year beginning or from last year when I started?

StupidLikeAFox · 29-02-2020 9:36pm

Spark1zz wrote: »

When they asked me to type annual profit, I typed 5,000, because I expect that profit in the year, I can't really know exact profit, because every time it's different. But it's up to 5,000

??

You put in the actual profit you made in a tax year.

Sleeper12 · 29-02-2020 9:54pm

Spark1zz wrote:

When they asked me to type annual profit, I typed 5,000, because I expect that profit in the year, I can't really know exact profit, because every time it's different. But it's up to 5,000

You were required to put down the profits you made last tax year not guess what your profits will be this year. You work out how much profits you made in the year 2019 and declare this amount AFAIK

Spark1zz · 29-02-2020 10:01pm

So every year I have to declare it, how much profit I made? So for this year I don't need to calculate anything, just declare what I earned in 2019? And next year do the same thing, I'm right?

Sleeper12 · 29-02-2020 10:16pm

Spark1zz wrote:

So every year I have to declare it, how much profit I made? So for this year I don't need to calculate anything, just declare what I earned in 2019? And next year do the same thing, I'm right?

Again I say I'm not an accountant but yes. That's my understanding

StupidLikeAFox · 29-02-2020 10:54pm

You will also have to pay tax on that profit btw.

Id say invest some of it on talking to an accountant. A half an hour would be of huge benefit and would take the uncertainty out of it and ultimately. He could advise on some things you might be able to claim to reduce the profit

Either that or ring up revenue, they are fairly helpful and won't mind giving you some advice on how to file the return.

PayPal and revenue

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