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Do you have a business Paypal account or do you feel frustrated, overwhelmed and put off doing your tax return because your Paypal is all mixed up?
I understand how it is.
You already have a Paypal account so you add your business transactions through it.
And then you come to do your tax return and you realise you now have a lot more work to do than you realised because your personal and business records are mixed up.
Today I’m sharing:
You have a Paypal account to buy for yourself personally.
You decide to start a business.
If you start a limited company, you need a separate business account with Paypal because a company is different legally to you (read more about the differences). Scroll down to Options and you’re done.
If you started as a sole trader, a lot of folks carry on using their already open personal Paypal account as it’s easier. Maybe you even changed that personal account to a business account (yes, they’re different) and carried on as before.
And then you come to do your tax return….
It’s all because your personal Paypal and your business Paypal are mixed up.
So what do you do?
Maybe you haven’t opened a separate account because you didn’t realise you could, or a business Paypal account sounds like a business bank account and business bank accounts feel scary, or you just haven’t got round to it yet.
Or you upgraded your personal Paypal account to a business one and left it at that.
All totally reasonable but don’t solve the ‘this is a pain in the arse’ problem.
For more about business bank accounts:
I’ll assume you want an easy life for your Paypal transactions so you can do as quickly as you can what you need to do for your tax return.
Bearing in mind that Paypal transactions really are presented in a way that is time consuming and no, it’s not you, do your best.
It’s another reason why a separate account for your business Paypal transactions is so important.
Your options for easy Paypal transactions:
Opening a Paypal business account is the best option and the one you must take if you have a limited company.
It’s free (at the time of writing) and you can link up your personal bank account if you don’t have a business bank account.
It’s the kind of Paypal account you need if you have a business as you’re buying and selling as a business.
It’s easy to set up and doesn’t have the same serious status of a business bank account so it doesn’t feel as adulting if you’re not really for a business bank account or your business is too small (yet) for it to be appropriate.
To be honest, if you have a business, you need to have a business Paypal account and keep the transactions separate from then on.
An easy way to transfer your payments is to do it as you’re doing your tax return. Job done.
If you’re really against opening a business Paypal account and it just doesn’t feel comfortable yet, open a separate personal Paypal account instead and separate your business and personal transactions that way.
You can change the account to a formal business Paypal account later.
Remember you can only use this option if your business is sole trader.
If you changed your personal Paypal account to a business Paypal account when you started your business, you have a business Paypal account with both personal and business transactions mixed up together.
For you, it’s easier to move your personal transactions to a new Paypal personal account. Remember you can only do this if your business is sole trader.
Oh and the price difference? A business Paypal account is free (at the time I’m writing).
I hope that helps.
All businesses and freelancers need a business Paypal account really. It’s easy and simple to set up, much less scary than a business bank account, so if you don’t have yours yet, take that baby step today and do it now.
You’ll thank me at tax return time 🙂
Tax Return Success – the online course with live group support calls and a chocolate brownie
I’d love to hear from you.
If you are looking for a safe space and the support you need to sort out your tax return, book a chat with me.
We’ll explore how you feel, what’s not working and how I can help, so you can feel calm, confident, organised, do it properly and feel on top of things.
To your financial self care,