employing family member

getmore4less

cte1111 wrote: »

That's not the case, look on the link I posted earlier for details.

that donut link seems to be wrong, goverment site says
Not entitled to the minimum wage
family members of the employer living in the employer’s home

Savvy_Sue

katykitten wrote: »

i pay him just under £100 per week, and he works around 15 hours for this, i havent paid him for almost a year (at his request) as he spends it straight away and wants to travel next year! Can i pay him all in one go or is this not allowed?

Paying him in larger lump sums than £100 pw means you and he will have to pay NI, AFAIK.

You could have avoided that by paying it throughout the year into an account to which he didn't have ready access - he could give you the debit card, for example.

However, if I could leave aside the strictly tax issues for the moment, when does he plan to start behaving like an adult and learning a) to budget and b) not to let money burn a hole in his pocket? I appreciate that it's at his request that you're doing this, but it's an important question, although not one you HAVE to answer ... and I apologise for putting it that bluntly but he's 23, not 13!!!

katykitten

Savvy_Sue wrote: »

Paying him in larger lump sums than £100 pw means you and he will have to pay NI, AFAIK.

You could have avoided that by paying it throughout the year into an account to which he didn't have ready access - he could give you the debit card, for example.

However, if I could leave aside the strictly tax issues for the moment, when does he plan to start behaving like an adult and learning a) to budget and b) not to let money burn a hole in his pocket? I appreciate that it's at his request that you're doing this, but it's an important question, although not one you HAVE to answer ... and I apologise for putting it that bluntly but he's 23, not 13!!!

my son has a disability & mental health issues

zygurat789

katykitten wrote: »

i pay him just under £100 per week, and he works around 15 hours for this, i havent paid him for almost a year (at his request) as he spends it straight away and wants to travel next year! Can i pay him all in one go or is this not allowed?

my son has a disability & mental health issues

Is that wise?

katykitten

i havent come onto this forum to have people make assumptions or judgements about how i parent my adult child, this is a tax forum not a parenting discussion so please dont make judgements where they are not called for - the moderator has also made inappropriate comments and judgements about my son, so please if you dont have anything useful or knowledgeable to say about my tax position - dont comment

Savvy_Sue

katykitten wrote: »

i havent come onto this forum to have people make assumptions or judgements about how i parent my adult child, this is a tax forum not a parenting discussion so please dont make judgements where they are not called for - the moderator has also made inappropriate comments and judgements about my son, so please if you dont have anything useful or knowledgeable to say about my tax position - dont comment

I apologise, and will send a PM (although I'm not a moderator).

As far as the tax issues go, I'd say the question of whether or not you need to register as an employer and pay NICs etc may be a historic one, since you have actually been paying him in the past. You might find this page useful, scroll down a little to "When you need to register". The question is potentially complicated because we don't know what other income he's had: he's a student now, and I don't think that student loans count as 'income', but if he was on ESA at any stage then that IS taxable so would need to be added to whatever you've paid him. Also if he has had any interest from significant savings or income from a trust, these both need to be added to his earnings.

My understanding is that the calculations for whether tax and NI are due have to be made at the time the payment is made. I've been having a read of this, which I think you'd find useful. Pages 7 and 8 explain that you can work out NI liability based on the period the payment covers, so that's helpful to you.

BTW, if you have an accountant, I would ask them for advice too.

silvercar

My understanding was that you could save the money up and pay him late in the tax year if mutually agreed. You would put him on the books before the end of the tax year and not have NI contributions to make if under the threshold. To make the paye software cope with this you may need to add the data as if you had paid it out each month.

From April 2013 you would need to report the pay as it is earned, not at the end of the tax year, so it is unlikely to be as easy to do.