Putting children on the payroll
Putting children on the payroll
Author
Discussion

david_s

Original Poster:

7,960 posts

267 months

Thursday 14th September 2006
quotequote all
Does anyone have any experience of employing their children? I would like to pay my two children a modest wage in return for them carrying out some simple tasks, say £25.00 each per week for a bit of sweeping up etc. Can I get a NI number for each of them and will the tax man accept it? The problem I may have is that they are only 6 & 8 years old, but is there a lower age limit for paid work? In terms of useful, productive work, I don't think they can be any more useless than the young lad I paid last week. They would have to do something for their money, but not much (so their hourly rate will be pretty good!). Any informed advice would be gratefully received.

percy flage

1,770 posts

245 months

Thursday 14th September 2006
quotequote all
£25 per week at 6 years old?

FFS.



aceparts_com

3,724 posts

264 months

Thursday 14th September 2006
quotequote all
I was thinking the same thing actually but he's only 13 months so it will be real simple things like licking stamps @ £150 per week but with a BMW X5 company car.

david_s

Original Poster:

7,960 posts

267 months

Thursday 14th September 2006
quotequote all
percy flage said:
£25 per week at 6 years old?

FFS.





Saves me giving him pocket money out of my highly taxed income, reduces company profits and hence corporation tax, no tax or ni to pay if under £100 ish per week and keeps my floor clean! Win win from my point of view....

Anyway, I am not interested in the ethics or practicality, just is it acceptable to Gordon's men?

BRoCceRs

3,237 posts

276 months

Thursday 14th September 2006
quotequote all
I like this thread and am watching with interest.

PetrolTed

34,464 posts

326 months

Thursday 14th September 2006
quotequote all
Isn't it illegal to employ anyone under the age of 12?

Stephanie Plum

2,797 posts

234 months

Thursday 14th September 2006
quotequote all
I think Teds right. What about your parents instead?

david_s

Original Poster:

7,960 posts

267 months

Thursday 14th September 2006
quotequote all
PetrolTed said:
Isn't it illegal to employ anyone under the age of 12?


I know that a friend's young child (about 6) gets paid for modelling clothes and stuff, but don't know how the income is treated. Child actors must get paid, but is it employment? Somebody will be along with the definitive answer soon i am sure.

david_s

Original Poster:

7,960 posts

267 months

Thursday 14th September 2006
quotequote all
Stephanie Plum said:
I think Teds right. What about your parents instead?


My parents allowances are all used up with pensions and other income. Anyway, I would like the children to 'earn' a bit of money for themselves rather than just emptying my pockets every evening.

Edited by david_s on Thursday 14th September 22:51

Stephanie Plum

2,797 posts

234 months

Thursday 14th September 2006
quotequote all

Eric Mc

124,808 posts

288 months

Friday 15th September 2006
quotequote all
I think they are just too young to be legally employed.

However, once a child eaches the legal age for working, they can be employed. Depending on their overall wage levels and income from other sources (if any), they may need to have PAYE deducted from their wages. They will not need to pay any NI until they reach 16 years of age.

People doing jobbing acting and modelling work are usually treated as freelance and are therefore self-employed.

david_s

Original Poster:

7,960 posts

267 months

Friday 15th September 2006
quotequote all
Eric Mc said:
I think they are just too young to be legally employed.

However, once a child eaches the legal age for working, they can be employed. Depending on their overall wage levels and income from other sources (if any), they may need to have PAYE deducted from their wages. They will not need to pay any NI until they reach 16 years of age.

People doing jobbing acting and modelling work are usually treated as freelance and are therefore self-employed.


Thanks for the answer, it looks like I won't get away with it.

Stephanie Plum

2,797 posts

234 months

Friday 15th September 2006
quotequote all
david_s said:
Eric Mc said:
I think they are just too young to be legally employed.

However, once a child eaches the legal age for working, they can be employed. Depending on their overall wage levels and income from other sources (if any), they may need to have PAYE deducted from their wages. They will not need to pay any NI until they reach 16 years of age.

People doing jobbing acting and modelling work are usually treated as freelance and are therefore self-employed.


Thanks for the answer, it looks like I won't get away with it.


Bum. I liked your thinking.

superlightr

12,920 posts

286 months

Friday 15th September 2006
quotequote all
Give the IR a phone call.


Paid work - I did so at about 9 & 10 for the cubs for bob a job week also
gardening/car washing when I was young.

david_s

Original Poster:

7,960 posts

267 months

Friday 15th September 2006
quotequote all
I'm still thinking....

superlightr

12,920 posts

286 months

Friday 15th September 2006
quotequote all
can they be selfemployed cleaners ie KidsRus and have a bank account Trading as and you write a cheque to the cleaners?

I would be tempted to just do it, and worry about it later. Small amount going out for cleaners will not abt an eye lid with the accountants. They are unter the Tax threashold so no tax worries.

If you cant, then blame the kids and make them pay it all back or be grounded for 40 years...

Edited by superlightr on Friday 15th September 15:32


You will be surprised at how much work 2yr old twins can do in an iron ore plant, and blimey the unions insist on double danger money as well...... kids eh. bloody expensive labour.

Edited by superlightr on Friday 15th September 15:34

david_s

Original Poster:

7,960 posts

267 months

Friday 15th September 2006
quotequote all
superlightr said:
can they be selfemployed cleaners ie KidsRus and have a bank account Trading as and you write a cheque to the cleaners?

I would be tempted to just do it, and worry about it later. Small amount going out for cleaners will not abt an eye lid with the accountants. They are unter the Tax threashold so no tax worries.

If you cant, then blame the kids and make them pay it all back or be grounded for 40 years...

Edited by superlightr on Friday 15th September 15:32


You will be surprised at how much work 2yr old twins can do in an iron ore plant, and blimey the unions insist on double danger money as well...... kids eh. bloody expensive labour.

Edited by superlightr on Friday 15th September 15:34


Just doing it and worrying about it later is what I usually do, having had a VAT inspection yesterday (which was MUCH better than expected) I am feeling a bit more cautious.

I like the idea of them being self employed, they can give me an invoice which I can pay and if it all goes wrong the taxman can chase them for the money! Or better still send, the little so and so's to prison.

Eric Mc

124,808 posts

288 months

Friday 15th September 2006
quotequote all
Not a goer, I'm afraid.

If they are self employed they would:

a) have to notify the Revenue within three months of start up

b) complete and sign a Self Assessment tax return

c) prove that they are genuinely self-employed i.e fulfill all the usual requirements (use their own tools and equipment, control the nature of the work they do, indemnify themselves from financial risk, show they have multiple customers, have a dedicated place of business - there are more of these |"badges of trade" tests by the way.

BigAlinEmbra

1,629 posts

235 months

Friday 15th September 2006
quotequote all
If you're paying them £25 a week they are well under the NI threshold anyway.

Eric Mc

124,808 posts

288 months

Friday 15th September 2006
quotequote all
Irrelevant.

NI not an issue for under 16s.

Employment and tax legislation is.