Page 1 of 2 12 LastLast
Results 1 to 10 of 15

Thread: Declaring PayPal accounts to the DWP

  1. #1
    Senior Member nukecad's Avatar
    Join Date
    Jun 2014
    Location
    West Cumbria (Lake District)
    Posts
    8,106

    Declaring PayPal accounts to the DWP

    This came up in an answer to another post, but I think it's interesting enough to be put in it's own thread.

    You are supposed to declare PayPal accounts to the DWP when claiming Income Related benefits.

    Just like you have to declare savings accounts, bonds, ISAs, etc.

    (I wonder how many haven't declared their PayPal account?)

    PayPal is not technically a bank, but it holds more customer money than most major banks do.

    Whilst a PayPal account is not a bank account it operates in a similar way.
    (Technically it is what is known as an escrow account)

    Any monies that you have in a PayPal account will be treated as capital for benefits purposes.

    And any monies paid by others into your PayPal account could be regarded as income, just as if you sold something and put the cheque/money into your bank account.
    (Of course it depends what you are selling, personal posessions will be disregarded - buying to resell, or manufacturing to sell will be income).

    You should also declare any income made through a paypal account to the taxman.
    (Again it depends on just what you are selling).
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  2. #2
    But for a lot of people i suspect they use paypal for nothing more than a way to pay for some goods and services and nothing more , with the funds coming from their bank accounts or cc accounts , so why should they declare that ? the right to privacy what happened to that?

  3. #3
    Senior Member
    Join Date
    Feb 2014
    Location
    West Midlands
    Posts
    386
    Quote Originally Posted by nukecad View Post
    This came up in an answer to another post, but I think it's interesting enough to be put in it's own thread.

    You are supposed to declare PayPal accounts to the DWP when claiming Income Related benefits.

    Just like you have to declare savings accounts, bonds, ISAs, etc.

    (I wonder how many haven't declared their PayPal account?)

    PayPal is not technically a bank, but it holds more customer money than most major banks do.

    Whilst a PayPal account is not a bank account it operates in a similar way.
    (Technically it is what is known as an escrow account)

    Any monies that you have in a PayPal account will be treated as capital for benefits purposes.

    And any monies paid by others into your PayPal account could be regarded as income, just as if you sold something and put the cheque/money into your bank account.
    (Of course it depends what you are selling, personal posessions will be disregarded - buying to resell, or manufacturing to sell will be income).

    You should also declare any income made through a paypal account to the taxman.
    (Again it depends on just what you are selling).
    Hi

    For me its a bit like declaring your student loan its a debt that has to be paid back eventually in theory but as the DWP see it as an income you get a double penalty from when I was a student

  4. #4
    Senior Member nukecad's Avatar
    Join Date
    Jun 2014
    Location
    West Cumbria (Lake District)
    Posts
    8,106
    Tom,

    That's fine if the funds have come out of another account to go into the paypal account then you will be able to show that, so no problem.

    If you are trying to hide funds in a paypay account without declaring them - big problem.

    I don't make the rules I'm just pointing them out.
    And pointing out some of the pitfalls that you may encounter.
    HMRC are looking hard at paypal accounts, expect the DWP to do the same.

    Your right to privacy is always there.
    Your right to hide capital/funds when claiming income related benefits is a different thing altogether.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  5. #5
    Quote Originally Posted by nukecad View Post
    Tom,

    That's fine if the funds have come out of another account to go into the paypal account then you will be able to show that, so no problem.

    If you are trying to hide funds in a paypay account without declaring them - big problem.

    I don't make the rules I'm just pointing them out.
    And pointing out some of the pitfalls that you may encounter.
    HMRC are looking hard at paypal accounts, expect the DWP to do the same.

    Your right to privacy is always there.
    Your right to hide capital/funds when claiming income related benefits is a different thing altogether.
    but that is the point i made i will not show them inform them of a paypal account because there is no need for me to do this, it isn't any of their business either because i don't use it as a bank

  6. #6
    How would they even go about investigating PayPal accounts? I'm pretty sure you can't search them by real name and just email?..

    I could be wrong though.

  7. #7
    Senior Member nukecad's Avatar
    Join Date
    Jun 2014
    Location
    West Cumbria (Lake District)
    Posts
    8,106
    Quote Originally Posted by tom34 View Post
    i will not show them inform them of a paypal account because there is no need for me to do this, it isn't any of their business either because i don't use it as a bank
    Sorry, you are wrong.

    Once you claim an INCOME RELATED benefit it becomes their business.

    It is a condition of making your IR claim that you disclose ALL capital and income. (All of it not just the bits you want to).

    If you don't want to declare it, don't make an IR claim.

    If you make an IR claim and don't decare all your relevant capital and income then that is benefit fraud, expect trouble down the line.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  8. #8
    Senior Member
    Join Date
    Nov 2015
    Location
    Greater London
    Posts
    314
    What about PayPal users who only use their account to pay for stuff bought online? We're not using the account to pay spare money into (Big joke)

    And as far as the PTB are concerned if your on benefits your not entitled to privacy!

  9. #9
    Senior Member deebee's Avatar
    Join Date
    Mar 2013
    Location
    croydon
    Posts
    1,596
    The op says they don't use it as a bank
    Maybe they like me just occasionally use PayPal to buy things online
    I think I have done so three times in total.
    Does this need declaring

  10. #10
    Seems straightforward to me. Declare any financial arrangement that involves deposits and withdrawls. My Paypal account always shows zero balance as it is linked to my current account but I will be declaring it in future having seen this thread.

Similar Threads

  1. PIP implementation problems - report of the Commons Public Accounts Committee
    By Flymo in forum Benefits - help & advice on disability benefits, incapacity benefits, ESA and DLA
    Replies: 3
    Last Post: 06-22-2014, 08:53 PM
  2. ATOS and Capita bosses questioned by the Commons Public Accounts Committee
    By Flymo in forum Benefits - help & advice on disability benefits, incapacity benefits, ESA and DLA
    Replies: 3
    Last Post: 01-29-2014, 12:43 PM
  3. public accounts committee, ATOS medical services.
    By art446 in forum Benefits - help & advice on disability benefits, incapacity benefits, ESA and DLA
    Replies: 2
    Last Post: 03-29-2013, 10:06 AM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •