Hi, I’ve just sold my second item through Folksy. The order, with postage, came to £35.50 but the payment into my PayPal account is showing as £34.09.
Does anyone know why the two figures are different?
PayPal take out their fee before the payment goes into your account. If you look at the transaction details in your PayPal account then you’ll see how much the fee was.
That makes sense, thanks.
That brings forth another question though - when I do my self assessment, how do I work out what I pay tax on? The total that went into my PayPal account? The total that went into my PayPal account minus postage costs? The total that went into my PayPal account minus postage costs and minus the Folksy commission? Or the full amount it was listed for? And if it’s the final one, is that the base price or the base plus postage price?
It’s harder than it looks, this selling online thing!
I think you need to put down the total amount before fees as income and then put fees (paypal and folksy) and postage as expenses.
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Yep, this is how I do it too.
Ah, thanks people 