Quizzes & Puzzles35 mins ago
Paypal Accounts
7 Answers
Apologies if this is the wrong section, but after watching a C5 programme last night about Fraudsters on Benefits I was wondering whether there is any obligation to report credit balances in a paypal account to the DWP when applying for means tested benefits. I guess there is but I doubt they ask specifically and would DWP ever be able to find out details of your payapal account? Does anyone know?
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Yes, claimants are required to declare all financial accounts
And probably, yes, there will be a way for the DWP to check. After all, nearly all existing benefits are being merged into Universal Credit and the contract to administer it has been awarded to the Government's preferred contractor - which just happens to be PayPal!
And probably, yes, there will be a way for the DWP to check. After all, nearly all existing benefits are being merged into Universal Credit and the contract to administer it has been awarded to the Government's preferred contractor - which just happens to be PayPal!
Whether the money counts as 'earnings' or not is probably determined by how you made it, rather than by where it is.
For example, if you sell stuff on eBay that you originally bought for your own use, but no longer want, HMRC won't regard the money as taxable income (but it will still be counted as 'savings').
However if you buy stuff specifically to resell on eBay (e.g. from a wholesaler, from charity shops or from local auction houses) then HMRC will regard your profit as taxable income, which must be declared as such. It then becomes 'savings' if you don't spend it.
Either way, HMRC (and the DWP) would regard the money in exactly the same way irrespective of whether it was in your PayPal account or transferred to your bank account.
For example, if you sell stuff on eBay that you originally bought for your own use, but no longer want, HMRC won't regard the money as taxable income (but it will still be counted as 'savings').
However if you buy stuff specifically to resell on eBay (e.g. from a wholesaler, from charity shops or from local auction houses) then HMRC will regard your profit as taxable income, which must be declared as such. It then becomes 'savings' if you don't spend it.
Either way, HMRC (and the DWP) would regard the money in exactly the same way irrespective of whether it was in your PayPal account or transferred to your bank account.
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