Children and paying tax

princessdon

My eldest (11) is approaching her tax free limit due to earnings. Do I inform the tax office via Self Assessment in case she goes over this (and her bank as she has some interest) or is there special rules for minors?

CLAPTON

no special rules for minors but her circumstances are unclear.

princessdon

Sorry - She is a member of a drama/stage school. A while ago an agent approached the drama school and a few of the students were taken on the books for photo shoots/tv work etc.

She has had her first assignment and will be paid £7800. As she has savings (a mix of parental contributions - we know we pay our 40% on interest over £100 pa), plus grandparents plus birthday money etc) this will likely take her over the £8100. There is also the possibility of future work this year (or not I have no idea).

The cheque is to be paid in her name. An unusual situation we had no idea of when the agent asked to put her forward.

I assume I do a Self Assessment for her?

Just to add - I'm off to bed but will check back tomorrow so apologies if I don't reply before tomorrow evening.

xylophone

http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm
See above but in conjunction with http://www.hmrc.gov.uk/rates/it.htm
(Allowances in examples out of date).

If she has R85 in place but no longer qualifies because she has some taxable income you will need to rescind them and reclaim on R40.

I assume that she missed out on the CTF? If so she can have a JISA into which £3500 per annum can be paid.
https://www.gov.uk/junior-individual-savings-accounts

See also http://www.hmrc.gov.uk/tdsi/children.htm#a

See also http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=hpkspulskxM for details of contacting HMRC which you will need to do if a tax code is to be issued.