I have been using Paypal to recieve payments and will like to show My Paypal statements as summary of sales. My concern is that the Monthly total Net income ( Total sales - expenses ) from Paypal is different from the monthly amount withdrawn to my bank as i normally purchase items via Paypal so i don't know if the withdrawals to my Bank account should be referred to as my Net income since the amount withdrawn reflects into my account.
Example Scenario from Paypal statement:
Total sales in May 2012: £2100
Fees, expenses and purchases via paypal: £500
Net income: £1600
Withdrawals to Bank account: £1400
Paypal B/l at end of month:£200
ukba quotes :vii) Invoice explanations or payment
summaries from the applicant’s
accountant. These are summaries or
explanations created by an applicant’s
accountant. These explanations should
include a breakdown of the gross salary,
tax deductions and dividend payments
made to the applicant. The total gross
salary and dividend payments should be
the same as the applicant’s earnings. The
payment summary should enable us to
check that these correspond with the net
payments into the applicant’s personal
bank account
.
From the quote from UKBA, my net income will be £1400 withdrawn into my account but from Paypal statement, my Net income is £2100-£500 = £1600
Should i calculate the net as £1600 as depicted on Paypal statement or £1400 as withdrawn into my account? Must net income declared correspond with amount deposited into Bank account? The £200 balance was left in my paypal account for future expenses. My accountant was going to calculate my Net for that month as £1600 but now we are confused because of the £1400 withdrawal deposited into the account.
Secondly,can someone please please share a Sole trader Sales summary format?
Seniors and Members, any advise will be much much appreciated
p.s- please please do not refer to the paypal topic already started on this forum as this is an entirely different query to that one.
Many thanks
