Does child model need to pay income tax?

kasia0308

Hello,
I want some advice regarding my son's (4 years of age!) starting modelling career. I haven't opened a bank account for him yet, but I wanted to ask whether we need to register him with the tax office as his earnings will be paid directly into the bank account.
Also, perhaps you might give me an advice which bank account would be most appropriate for us? thank you, Mrs K Kelly

terryw

Yes it is necessary to register with HMRC

Nick_C

Children's income is taxable, but they have the same personal allowance as adults - currently £10500 pa. If your son earns more than £10500 pa you will need to arrange for income tax to be paid. If his total income, including income from savings and investments, is less than the personal allowance then no tax is due.

Children under 16 do not have to pay National Insurance contributions. (Check with HMRC to see if its necessary to complete a form to claim exemption.)

As TerryW says, you will need to register your son as self employed even if no tax is due, and complete a self assessment form on his behalf each year.

xylophone

£10500 pa.

???


£10,000 pa? http://www.hmrc.gov.uk/rates/it.htm

http://www.which.co.uk/money/tax/guides/tax-and-your-children/children-and-tax/ (cites single allowance for 2013-14)

If your child has savings income as well http://www.hmrc.gov.uk/taxon/worked-examples.htm

Remember that R85 can only be completed if the child's income is under the tax free allowance.

terryw

10000 for 2014/15
10500 for 2015/16 (budget increase)