Is Paypal considered to be a Bank account? Help! Hi, my husband has sworn his declaration with the OR that he has declared all assets etc. However he has forgotten to mention that he has a Paypal Account. It's only been remembered because I have received a communication from an ebay client who wants a refund on an item that has been damaged in transit. On looking at the Paypal account he has discovered that there is still £50 in there. What should he do? Refund the ebay client and close the Paypal account, or declare the omission to the OR and take the consequences and if the latter what will the consequences be? - has he perjured himself?
Forgetting a creditor or bank account isn't a problem as this can happen a lot of the time. I don't know for definite that the Paypal account would be considered a bank account but provided your husband isn't doing a lot of selling on ebay then it should be fine to refund the client and close the account if you want to. If you are selling lots of goods on ebay the OR may consider claiming some of the income but if it is only the odd couple of items now and again it should be fine.
Thank you so much. Ebay was part of the business, and whilst he has stopped selling on ebay this refund request has come since going BR last Tuesday and he doesn't want to be seen as favouring an individual as this person could now be seen as a creditor? Should he simply tell the OR about this situation or keep it quiet, refund the client and close accounts
I would just refund the client and then close the Paypal account otherwise it could get a bit awkward. The sale was before the BR but the refund request was after the BR so it's a bit messy. The amount is also minimal at £50 so it's not something that the OR would be overly concerned with.
I would ask the OR for advice, you dont want to be seen as favouring a creditor over another, and the £50 although nominal was part and is still part of your estate which is what the OR is there to deal with, so to be on the safe side ask the OR's advice first
Is Paypal considered to be a Bank account? Help!
Posted - 19 June 2010 : 15:37:58
