Nerdy Note! Children DO pay tax 19 August 2008 at 7:53PM edited 30 November -1 at 1:00AM in Money Saving Polls 4 replies 2K views

Former_MSE_Archna

Many people incorrectly think children don’t have to pay tax. Not true, they pay exactly the same as every adult. Yet everyone under 65 is entitled to earn £6,035 before needing to pay tax. The misunderstanding stems from that while most adults hit this, most children don’t (see top childs savings guide for more.)

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Trow

Ignore - I'm being daft

studioeng

Isn't the current tax allowance £5,435 (or £5,439 depending on who you speak to); to be raised to £6,035 from the 6th September 2008??

liitleblackcat

Income does not include pocket money from parents or grandparents (or presumably anyone else). It has to be earned by way of a job or from savings interest. And if the savings come from the parents, then it gets taxed after only £100, not the full personal allowance.

Our kids never earned anything like £5,000 when they were at school and didn't really come close to that with Saturday and holiday jobs in 6th form or university, but where tax was deducted, it took a long time to get it back from HMRC.

kk877

I thought the personal allowance was £5435 not £6035. Is it going up to £6035 on 6 th Sep as mentioned above ?