how young can you officially start a business

COOLTRIKERCHICK

dzug1 wrote: »

There most definitely will - even if not formal written ones any transaction for money is an implied contract.

so according to what you have said, in theory no person under 16 can work then? as every payment/transaction is a contract

there is a side-shoot option/oppertunity that my business could do, but to be honest it is not financially worth it, as by the time i pay my staff, it would actually cost me money to do it.

But for someone starting out who has no financial commitment, household bills, mortgage, car to run etc it would be a good little business to start.

i could tell someone else about it, and let them earn some money, which prob be not declared in anyway. not only that it would be a good starting point for my boys, to appreciate money does not grow on trees.

They are allways asking me how can they earn some extra money etc...


So They can start a business and they dont need to delcare it until they are 16, unless the profit is over £6475

fengirl_2

No, a person under 16 can work and they patently do work - all those cute kids in adverts for instance. The difference is that the contract for the work those children do will be between their parents as agents for the children.

Yes, they can start a business and HMRC would not be interested unless thier profit exceeded the personal allowance (6475 this year), or until they reached 16 and became liable to NIC's.

COOLTRIKERCHICK

fengirl wrote: »

No, a person under 16 can work and they patently do work - all those cute kids in adverts for instance. The difference is that the contract for the work those children do will be between their parents as agents for the children.

Yes, they can start a business and HMRC would not be interested unless thier profit exceeded the personal allowance (6475 this year), or until they reached 16 and became liable to NIC's.

thanks fengirl, really do appreciate the advice,

dzug1

COOLTRIKERCHICK wrote: »

so according to what you have said, in theory no person under 16 can work then? as every payment/transaction is a contract

No - they can work no problem.

The problem is that any contract they enter is not (with some exceptions) legally enforceable if things go wrong.

COOLTRIKERCHICK

dzug1 wrote: »

No - they can work no problem.

The problem is that any contract they enter is not (with some exceptions) legally enforceable if things go wrong.

ok thanks..

its basically buying and seling things anyway, so no actual contracts involved

Nosrrud

There are laws protecting children from working i.e. employed. If they started and ran their own company they would be employees and be bound by various employment laws (never mind the Children's, Young People, Health & Safety & Education acts).

In summery, here are the restrictions in place by various laws and if your kids role within the company does not exceed these, then they'll be fine though law is often determined in the court and case stud's often surprise you with what's allowed and what's not.


Restrictions on the employment of children

• The children and Young Persons Acts 1933-1969, as amended by the children (Protection at Work) Regulations 1998 (SI 1998/276), impose restrictions on the employment of children in certain jobs and restrict the hours that children may work. Further restrictions on the employment of children may be imposed by local authorities, which means that specific regulations may vary from region to region.
• In general, the law prohibits the employment of children under the age of 14 (s.1(1) of the children Act 1972). However, some local authorities permit the employment of children who have reached the age of 13, in certain types of work, for example:
• agricultural or horticultural work, on an occasional basis, and working under the direct supervision of a parent;
  the delivery of newspapers;
  shop work such as shelf stacking;
  office work;
  work in a restaurant or caf!, although not in the kitchen; and
  domestic work in hotels and other establishments offering accommodation to the public.
  The work must be "light work" if a 13-year old is employed. "Light work" in this context is defined as work that will not jeopardise a child's safety, health or development, nor be harmful to the child's attendance at school or participation in work experience.
• It is not permissible to employ children of any age in an industrial undertaking (s.1 of the Employment of Women, Young Persons and children Act 1920), and children may not be employed to lift, carry or move anything so heavy as to be likely to cause them injury (s.18(1) of the children and Young Persons Act 1933).
• The employment of children under the age of 16 is forbidden in almost all forms of gambling.
• Under the children and Young Persons Act 1933, as amended by the children (Protection at Work) Regulations 1998, the hours of work of children are restricted. children must not be employed:
• during school hours on any day on which the child is required to attend school;
  before 7 am and after 7 pm on any day;
  for more than two hours on any school day, or more than one hour before school;
  for more than two hours on any Sunday;
  for more than 12 hours in any week that includes a school day.
  On non-school days (excluding Sundays), children aged 13 and 14 may be employed for up to five hours. Working hours must not exceed 25 in any one week.
• children aged 15 and 16 (if under school leaving age) may work for up to eight hours on any non-school day (excluding Sundays). Working hours may not exceed 35 in any one week.
• Where a child is employed for more than four hours, a break of at least one hour must be granted.
• children in their last year of compulsory schooling may undertake work experience as part of their education provided that the employment is approved by the local education authority (Education (Work Experience) Act 1973 as amended by s.14 of the Employment Act 1990).
• An employer that wishes to employ a child must obtain a permit from the local education authority, which has the power to require information from the employer about the proposed work and hours of work. The local authority may also set out certain conditions that must be adhered to, or even prohibit or restrict employment if it feels that the employment, although not unlawful, may be to the child's detriment.
• Special rules govern public performances by children. children are permitted to take part in public performances (for example an entertainment performance such as in a theatre) provided that a licence is first obtained from the local authority (s.37 of the children and Young Persons Act 1963). There is also a requirement to obtain a licence before a child may take part in a sport or work as a model, whenever payment is made either to the child directly or to someone else on the child's behalf.

somethingcorporate

COOLTRIKERCHICK wrote: »

ok thanks..

its basically buying and seling things anyway, so no actual contracts involved

Buying and selling is entering into a contract. Often implied or standard form (not negotiated) but contracts all the same.

COOLTRIKERCHICK

somethingcorporate wrote: »

Buying and selling is entering into a contract. Often implied or standard form (not negotiated) but contracts all the same.

so ... basically are they allowed to have their own business buying and selling items?

as this is getting rather confusing and contradictory..

one is saying they cant enter a contract until they are 16... but there are no written contracts, just buying and selling, and then other people are saying by selling you are entering a contract, which is a technical term is not allowed for someone under 16


think i better go and ask my accountant tomorrow

fengirl_2

Buying and selling constitute contracts - a contract does not have to be in writing. Its just an agreement between two parties for one party to do something for the other. It would be a simple matter for the transactions to go through you or one of the other parents. I also doubt whether a bank would allow them a business account, so, again, it would need to be held in trust by you or another parent.

edgex

as they are still 'minors', they can only enter into contracts for what would be considered as essentials
so no, they cant enter into commercial contracts, which is what buying & selling is


seems to me that the route to take would be to actually employ them within the business, & to allow them a certain amount of freedom on those parts that dont involve anything that would be dealt with by 'adults' ie forming contracts etc