Paying tax in the UK as a seller?

[vickyevans6543]

Hello,

I have a question about paying tax in the UK as a freelancer.

As I understand it, sellers on Fiverr should declare their earnings to HMRC.

My question is, what’s to stop someone simply not doing this?

Unless I’m wrong, a seller doesn’t link their national insurance number or anything with their Fiverr account, just their name and email address etc.

I don’t see why people don’t just not declare it? Especially if they can withdraw earnings via PayPal.

How would HMRC possibly know about earnings? Is it just based on people’s honesty of declaring them?

Thanks

[Guest logovideosuk]

HMRC has access to PayPal accounts. PayPal may not have your NI number, but if HMRC want to track an individual down, they will.

Do a Google search for info about HMRC and PayPal - lots of good info.

Good luck!

[Guest lloydsolutions]

Hello,

I have a question about paying tax in the UK as a freelancer.

As I understand it, sellers on Fiverr should declare their earnings to HMRC.

My question is, what’s to stop someone simply not doing this?

Unless I’m wrong, a seller doesn’t link their national insurance number or anything with their Fiverr account, just their name and email address etc.

I don’t see why people don’t just not declare it? Especially if they can withdraw earnings via PayPal.

How would HMRC possibly know about earnings? Is it just based on people’s honesty of declaring them?

Thanks

I don’t see why people don’t just not declare it?

If you have income you don’t declare you have broken the law. From the point of view of HMRC you are guilty of tax evasion.

[joewest1802]

Thanks for your reply

Apparently HMRC can also check peoples bank accounts, if that person is under investigation.

My big conundrum is, why would they be inclined to check in the first place?

If they need access to a persons bank or PayPal account in order to discover an undeclared payment, how would they know to check in the first place, unless they’re being alerted to it already?

Is that not a bit of a paradox?

I’m not expecting people on here to admit to what I’m suggesting could theoretically happen, but I’m thinking it must still happen and go unnoticed.

[vickyevans6543]

Thanks for your reply

Apparently HMRC can also check peoples bank accounts, if that person is under investigation.

My big conundrum is, why would they be inclined to check in the first place?

If they need access to a persons bank or PayPal account in order to discover an undeclared payment, how would they know to check in the first place, unless they’re being alerted to it already?

Is that not a bit of a paradox?

I’m not expecting people on here to admit to what I’m suggesting could theoretically happen, but I’m thinking it must still happen and go unnoticed.

That’s exactly what I mean

[Guest logovideosuk]

Why do you stop at a red traffic light if there isn’t a police officer around? You know you probably wouldn’t get caught, but you also know that morally it’s the right thing to do.

[Guest lloydsolutions]

Thanks for your reply

Apparently HMRC can also check peoples bank accounts, if that person is under investigation.

My big conundrum is, why would they be inclined to check in the first place?

If they need access to a persons bank or PayPal account in order to discover an undeclared payment, how would they know to check in the first place, unless they’re being alerted to it already?

Is that not a bit of a paradox?

I’m not expecting people on here to admit to what I’m suggesting could theoretically happen, but I’m thinking it must still happen and go unnoticed.

but I’m thinking it must still happen and go unnoticed.

That happens as far as all laws and rules are concerned … but then people get caught!

[joewest1802]

Why do you stop at a red traffic light if there isn’t a police officer around? You know you probably wouldn’t get caught, but you also know that morally it’s the right thing to do.

I agree, declaring it is the right thing for us to do.

I’m just equally curious, like the OP, how HMRC become aware of such transactions in the first place

[Guest lloydsolutions]

I agree, declaring it is the right thing for us to do.

I’m just equally curious, like the OP, how HMRC become aware of such transactions in the first place

I’m just equally curious, like the OP, how HMRC become aware of such transactions in the first place

If you type “how do HMRC find tax evaders” in a search engine you will find lots of eye opening information regarding this.

[kometbeats]

Hello,

I have a question about paying tax in the UK as a freelancer.

As I understand it, sellers on Fiverr should declare their earnings to HMRC.

My question is, what’s to stop someone simply not doing this?

Unless I’m wrong, a seller doesn’t link their national insurance number or anything with their Fiverr account, just their name and email address etc.

I don’t see why people don’t just not declare it? Especially if they can withdraw earnings via PayPal.

How would HMRC possibly know about earnings? Is it just based on people’s honesty of declaring them?

Thanks

Especially if they can withdraw earnings via PayPal

Pretty sure PayPal alerts HRMC once there’s a significant amount of activity in your account.

Is it just based on people’s honesty of declaring them?

Tax evasion can get you prison time or at the very least a fine that would’ve made it cheaper to have paid taxes in the first place. It isn’t about honesty, it’s about fear of consequence.

[uk1000]

I don’t see why people don’t just not declare it?

If you have income you don’t declare you have broken the law. From the point of view of HMRC you are guilty of tax evasion.

Doesn’t it depend how much someone earns?

eg. there’s a link on their site:

GOV.UK

Check if you need to send a Self Assessment tax return

Use this tool to find out if you need to send a tax return for the 2019 to 2020 tax year (6 April 2019 to 5 April 2020).

If they use that checker and it says they don’t need to fill in a self assessment tax return (eg. they didn’t earn enough) I assume that’s okay.

[Guest lloydsolutions]

Doesn’t it depend how much someone earns?

eg. there’s a link on their site:

GOV.UK

Check if you need to send a Self Assessment tax return

Use this tool to find out if you need to send a tax return for the 2019 to 2020 tax year (6 April 2019 to 5 April 2020).

If they use that checker and it says they don’t need to fill in a self assessment tax return (eg. they didn’t earn enough) I assume that’s okay.

That is a useful link for anyone reading this and they can always ring their local tax office for further clarification if necessary.