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  • FIRST POST
    • Stealth07
    • By Stealth07 17th Oct 16, 6:29 PM
    • 6Posts
    • 0Thanks
    Stealth07
    Best investment for working child?
    • #1
    • 17th Oct 16, 6:29 PM
    Best investment for working child? 17th Oct 16 at 6:29 PM
    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!
Page 1
    • sheramber
    • By sheramber 17th Oct 16, 7:22 PM
    • 3,155 Posts
    • 2,423 Thanks
    sheramber
    • #2
    • 17th Oct 16, 7:22 PM
    • #2
    • 17th Oct 16, 7:22 PM
    How old is your child?
    • Stealth07
    • By Stealth07 17th Oct 16, 9:31 PM
    • 6 Posts
    • 0 Thanks
    Stealth07
    • #3
    • 17th Oct 16, 9:31 PM
    • #3
    • 17th Oct 16, 9:31 PM
    11 years old
    • xylophone
    • By xylophone 17th Oct 16, 9:47 PM
    • 21,305 Posts
    • 12,232 Thanks
    xylophone
    • #4
    • 17th Oct 16, 9:47 PM
    • #4
    • 17th Oct 16, 9:47 PM
    Give HMRC a ring to check your child's situation - they will have dealt with child actors etc before!
    • xylophone
    • By xylophone 17th Oct 16, 9:49 PM
    • 21,305 Posts
    • 12,232 Thanks
    xylophone
    • #5
    • 17th Oct 16, 9:49 PM
    • #5
    • 17th Oct 16, 9:49 PM
    How much do you expect your child to earn?
    • jimjames
    • By jimjames 17th Oct 16, 9:54 PM
    • 11,783 Posts
    • 10,144 Thanks
    jimjames
    • #6
    • 17th Oct 16, 9:54 PM
    • #6
    • 17th Oct 16, 9:54 PM
    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!
    Originally posted by Stealth07
    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
    • By bigadaj 18th Oct 16, 11:26 AM
    • 8,947 Posts
    • 5,685 Thanks
    bigadaj
    • #7
    • 18th Oct 16, 11:26 AM
    • #7
    • 18th Oct 16, 11:26 AM
    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.
    Originally posted by jimjames
    Yes, vat limit is a bit higher than liability for paying basic rate tax!
    • george4064
    • By george4064 18th Oct 16, 11:27 AM
    • 743 Posts
    • 789 Thanks
    george4064
    • #8
    • 18th Oct 16, 11:27 AM
    • #8
    • 18th Oct 16, 11:27 AM
    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 arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £6,131.58/£12,000 (51%)
    • jimjames
    • By jimjames 18th Oct 16, 11:51 AM
    • 11,783 Posts
    • 10,144 Thanks
    jimjames
    • #9
    • 18th Oct 16, 11:51 AM
    • #9
    • 18th Oct 16, 11:51 AM
    Yes, vat limit is a bit higher than liability for paying basic rate tax!
    Originally posted by bigadaj
    But do individuals have to register for VAT?
    Remember the saying: if it looks too good to be true it almost certainly is.
    • xylophone
    • By xylophone 18th Oct 16, 1:21 PM
    • 21,305 Posts
    • 12,232 Thanks
    xylophone
    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
    • By bigadaj 18th Oct 16, 6:07 PM
    • 8,947 Posts
    • 5,685 Thanks
    bigadaj
    But do individuals have to register for VAT?
    Originally posted by jimjames
    Depends on how they are trading I suppose.
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