I am doing this using my accountancy/tax mind in the UK. There are certain things you can give your money away to, and the person doesn't pay tax on it. Now before any bright spark thinks, this is a great way around the system, forget it. There are no loopholes and even if there were I'm not telling you about them.
Fact. In the UK you can make gifts to different people each year, think Christmas, birthday, but there are limits to the amount you can give. Most people don't know this, and so break the tax law on giving their kids Christmas presents.
But you can also give more using Inheritance Tax. I know boring, you should have been at the intensive 3 day course I attended just before Christmas one year.
I digress, so there are legal ways of giving your money away without the person paying tax.
But, that doesn't stop you paying fees with PayPal. Wrong, if you are in the UK, you can send and receive a gift with no fees being charged.
I am on the hunt because it looks like it is a feature for the UK only, but let me know if you would be interested in knowing more. As I say it isn't just about not paying PayPal fees, but also about knowing that the money was a gift not an income, big difference when it comes to tax. And no, it isn't breaking the law, it isn't even getting around it slightly. Tax in the UK is my speciality and one I have studied and applied for thousands of clients saving them thousands of dollars.