Separate paypal account? New girl question!

[Ginnybean]

Hello everyone, I'm Gin and am trying to get my head around some of the practicalities of earning money online. I've dabbled for several years but only making a few pounds here and there. Recently I have become more focused and am starting to have some of the first small amounts ready to pay out (only surveys etc so far). I am not sure how to organise myself with paypal and so one.

I have a separate email address which I use for offers and surveys which turns out to be a very good idea. I also understand that I need to declare income to HMRC (bookkeeper & accountant by training!) but am not quite sure what is best to do about the other things. I do know from a general business point of view but would like feedback on the best way to be set up for all the apps, websites and opportunities mentioned on the forum and online.

Do I have a separate paypal account for all the earnings to go to? Or does everyone just use their normal personal one? I do not want to run into any problems as I move forward; of course having a few small items over a period of time is fine in a personal paypal but what about regular amounts?

Related to this do you ahve a separate bank account or account you specifically use?

Finally (sorry I know this is getting rather long) does the answer change depending what I'm doing? Would matched betting for example have a different answer to most things?

Thank you for your assistance and I look forward to chatting with you in the forum.

 

[Jon]

Hello everyone, I'm Gin and am trying to get my head around some of the practicalities of earning money online. I've dabbled for several years but only making a few pounds here and there. Recently I have become more focused and am starting to have some of the first small amounts ready to pay out (only surveys etc so far). I am not sure how to organise myself with paypal and so one.

I have a separate email address which I use for offers and surveys which turns out to be a very good idea. I also understand that I need to declare income to HMRC (bookkeeper & accountant by training!) but am not quite sure what is best to do about the other things. I do know from a general business point of view but would like feedback on the best way to be set up for all the apps, websites and opportunities mentioned on the forum and online.

Do I have a separate paypal account for all the earnings to go to? Or does everyone just use their normal personal one? I do not want to run into any problems as I move forward; of course having a few small items over a period of time is fine in a personal paypal but what about regular amounts?

Related to this do you ahve a separate bank account or account you specifically use?

Finally (sorry I know this is getting rather long) does the answer change depending what I'm doing? Would matched betting for example have a different answer to most things?

Thank you for your assistance and I look forward to chatting with you in the forum.

Hi @Ginnybean

Thanks for the questions and welcome to TMS!

Personally, I have a seperate HSBC account that I funnel all my money through. This makes it very easy to see at the end of the year how much I have made as I just bring up a statement showing all the deposits that have gone in in the last 12 months.

For Matched Betting while it is tax free and doesn't need to be declared it's generally easier to do if you use a seperate account than your normal everyday bills one as you will have 1001 bookie transactions coming out of that account every month and it can look a bit of a muddle.

 

[Ginnybean]

Great thanks Jon.

What about Paypal?

 

[Topaz]

I have just the one Paypal account and a separate bank account just for the online earnings, to make it easy to see what's what.

 

[Jon]

I've always used the same PayPal account. Even if someone pays you into it you withdraw it through to your bank account anyway

 

[Ginnybean]

For the separate bank account what sort do people have. Do I just open another personal current accout at my own bank or what? I don't think I want all the extra transactions in my main account.

Also will having another current account affect my credit rating in your experince? Woundering what has actually happened for people rather than the official lines!

Thanks

 

[Jon]

For the separate bank account what sort do people have. Do I just open another personal current accout at my own bank or what? I don't think I want all the extra transactions in my main account.

Also will having another current account affect my credit rating in your experince? Woundering what has actually happened for people rather than the official lines!

Thanks

I just added another account to my existent HSBC one - took about 2 minutes to do

having another bank account in no way affects your credit rating

 

[Ginnybean]

I just added another account to my existent HSBC one - took about 2 minutes to do

having another bank account in no way affects your credit rating

Great, thanks. Nice and easy then

 

[The Reverend]

Also worth noting is that you can point multiple email addresses to one paypal account.

paypal doesn't like people having multiple PP accounts (from what I remember) so being able to link multiple email address to one account makes life a little easier.

 

[Mike_S]

Hi Ginny, I do the same as the others have said regarding Paypal. I only have one account but all 3 of my e-mail addresses point to it so I can use any of them.
A few of the things I do don't allow Paypal (eg Field Agent) so I give them the details of an online Building Society account to pay into. As long as they have a sort code and account number it doesn't matter if it's a current account or savings account. Coventry BS have a decent interest rate at the moment, about 1.5%

One point worth mentioning regarding HMRC. They changed the rules last year regarding earnings made in the gig economy (all the various apps, surveys, baby sitting, dog sitting etc) and you can now make up to £1000 per annum without declaring it. That's earnings, not profit sadly, but if you're only doing bits and bobs it's worth knowing. It is on the HMRC website now. I put all earnings into a spreadsheet so I can keep track, bit tedious but saves hassle later,

Good luck increasing your income
Mike

 

[Ginnybean]

Hi Ginny, I do the same as the others have said regarding Paypal. I only have one account but all 3 of my e-mail addresses point to it so I can use any of them.
A few of the things I do don't allow Paypal (eg Field Agent) so I give them the details of an online Building Society account to pay into. As long as they have a sort code and account number it doesn't matter if it's a current account or savings account. Coventry BS have a decent interest rate at the moment, about 1.5%

One point worth mentioning regarding HMRC. They changed the rules last year regarding earnings made in the gig economy (all the various apps, surveys, baby sitting, dog sitting etc) and you can now make up to £1000 per annum without declaring it. That's earnings, not profit sadly, but if you're only doing bits and bobs it's worth knowing. It is on the HMRC website now. I put all earnings into a spreadsheet so I can keep track, bit tedious but saves hassle later,

Good luck increasing your income
Mike

Thanks Mike Interesting that you can use a savings account to be paid into.

The HMRC allawance is great for most people. Unfortunatley for someone like me who already has another business the £1,000 is across all businesses not just the "gigs" one.

 

[Jon]

Thanks Mike Interesting that you can use a savings account to be paid into.

The HMRC allawance is great for most people. Unfortunatley for someone like me who already has another business the £1,000 is across all businesses not just the "gigs" one.

A lot of us are in that same boat on here. We work full time + do self employed work. I only do 2 things online now to earn money, risk free matched betting and blogging and it's only the latter that I have to declare money for. Makes things a damn sight easier for me each year when filing in my tax return lol