Best investment for working child?

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Stealth07
Stealth07 Posts: 9 Forumite
in Savings & investments
My Child has started doing paid commercial work, I'm not 100% clear on the paying VAT situation if anyone could advise?

Also any recommendations on where to save with or invest for best returns?

Thanks!

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  • sheramber
    sheramber Posts: 19,124 Forumite
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    How old is your child?
  • Stealth07
    Stealth07 Posts: 9 Forumite
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    11 years old
  • xylophone
    xylophone Posts: 44,416 Forumite
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    Give HMRC a ring to check your child's situation - they will have dealt with child actors etc before!
  • xylophone
    xylophone Posts: 44,416 Forumite
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    How much do you expect your child to earn?
  • jimjames
    jimjames Posts: 17,619 Forumite
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    Stealth07 wrote: »
    My Child has started doing paid commercial work, I'm not 100% clear on the paying VAT situation if anyone could advise?

    Also any recommendations on where to save with or invest for best returns?

    Thanks!

    Any particular reason why they'll be paying VAT or is that a typo? Everyone has the same allowance so if they earn in excess of that they'll be paying income tax and possibly NI.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    jimjames wrote: »
    Any particular reason why they'll be paying VAT or is that a typo? Everyone has the same allowance so if they earn in excess of that they'll be paying income tax and possibly NI.

    Yes, vat limit is a bit higher than liability for paying basic rate tax!
  • george4064
    george4064 Posts: 2,811 Forumite
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    Your 11 year old child probably isn't earning more than the income allowance (which is tax free), unless she is a famous actor??

    As others have said, children also get the same income allowance just like any other ordinary person. No more and no less.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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  • jimjames
    jimjames Posts: 17,619 Forumite
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    bigadaj wrote: »
    Yes, vat limit is a bit higher than liability for paying basic rate tax!

    But do individuals have to register for VAT?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • xylophone
    xylophone Posts: 44,416 Forumite
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    https://www.gov.uk/vat-registration/when-to-register

    OP is likely to have meant income tax -

    https://www.gov.uk/child-employment/paying
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    jimjames wrote: »
    But do individuals have to register for VAT?

    Depends on how they are trading I suppose.
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