Accounting for paypal fees ....

ChicoMendez

Every time i get an invoice paid via paypal - i pay a comission.
in short How do i account for this in my annual returns ?

Tnx

kluivert

??

Annual Returns - Which Return sorry?

Income Tax
Vat
Accounts

ChicoMendez

kluivert wrote:

Accounts

in my accounts, is this counted as an expense?

kluivert

Sorry they should go into your accounts as a bank charge.

Bank Charges is included seperately under the heading bank interest and charges which comes after your admin expenses.

ChicoMendez

kluivert wrote:

Sorry they should go into your accounts as a bank charge.

Bank Charges is included seperately under the heading bank interest and charges which comes after your admin expenses.

Tnx alot!

ChicoMendez

kluivert wrote:

Sorry they should go into your accounts as a bank charge.

Bank Charges is included seperately under the heading bank interest and charges which comes after your admin expenses.

OK- just to finish this off

suppose i do a but of work for someone for 150
they transfer that amoun tover to me via paypal
paypal take off 6.15 of a fee
that leaves me with 143.85

do i pass the 150 figure or the 143.85 figure through by sales books ? as i may as weel have invoiced the client 143.85 (cos paypal are taking the piss!!)

Tnx

karangka

Put 150 as sales. The fee of 6.15 was the cost of sales or commission owed.

Then claim 6.15 as bank charge. You can also do this in another way:

Claim 143.85 as sales and don't claim the bank charge or paypal charge.