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TheDesignHero
June 21, 2019
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What category do I file Paypal Fees under?

  • June 21, 2019
  • 1 reply
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I've been looking for a while but have no idea under what category I should file my Paypal fees ?

I receive £90 and then have a separate charge of £3.26 as the fee. It automatically categorizes this under Professional fees, is this correct?

Best answer by JessT

Can I ask what you categorise your PayPal fees as please? It totally makes sense what you’re saying.


Hi Home54,

 

PayPal is connected like a bank account, and its transactions are treated the same way. However, you can change the category of the PayPal fees that reached £ 500 or more. You can consult an accountant or phone HMRC about it.

 

At Intuit, we'll be happy to assist you with How do I's, but for questions regarding specific categories, it's best to consult an accountant or your tax agency.

 

If you have more questions, you can always go back to this thread.

1 reply

E
EmmaM
June 21, 2019

Hello TheDesignHero

 

For Paypal fees you can create a new chart of account for Paypal fees.

 

To do this go to accounting> chart of accounts> new> expenses> detail type you can use the one you mentioned or bank charges (as this is for fees you pay to financial institutions)>name-name it Paypal fees>save

 

That way you can when when you run a report on expenses see what you are spending on Paypal fees

Any questions on this just reply back to this post.

 

 

Thanks

 

Emma

 

T
TheDesignHeroAuthor
June 27, 2019

Hey Emily, I unfortunately don't have that option in Quickbooks self employed. Is there another way I can do that or some other way I can categorise the fees correctly? Currently they're under professional fees, does that work?

Also I have the same kind of question in regards to Paypal but with payments from other currencies. Currently I have it showing up like this:

Payment from Customer : + 1000 CAD

Conversion fee -  Currency Conversion (debit) - To British Pound :-CA$955.70

Currency Conversion (credit) - From Canadian Dollar - +£552.04

How do I go about categorizing this correctly? I have currently got the +552.04 as credit to my account as that is the actual money that went in, but I somehow need to minus the fees I've been charged. Do I need to do this manually?

P
payment after leaving
June 27, 2019

Hi TheDesginHero

 

You should be categorising Paypal fees under Other financial Charges, we have enclosed a link.

 

https://quickbooks.intuit.com/community/Taxes-and-Year-End/About-SA103F-Categories/td-p/239287

 

You will also have to record multi-currency payments manually in GBP.

 

 

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