Offsetting Income tax as Daughter works for me

Warren_Mcconnaughie

Ok I have PAYE in my full time job, and have also a weekend job as a photographer. My Daughter works most weekends with me and is only 14, I pay her a wage for the day so can I off set my tax bill because of this ??

Very confused

Warren

purdyoaten

If she genuinely works for you - why not? Your profit will be reduced by the amount that you pay her.

WestonDave

Yes but make sure its all traceable - better to transfer the money to her bank account etc than hand over her wages in cash - that way if its ever questioned you have a paper audit trail.

Warren_Mcconnaughie

Thanks WestonDave , it has been cash in hand so maybe better to change from now on.

Warren

lovinituk

I'm pretty sure you are supposed to be running a payroll and reporting to HMRC how much you pay her on a monthly basis...

https://www.gov.uk/running-payroll/reporting-to-hmrc

We had a 14 year old doing some work during the school hols and had to include her on the payroll monthly submissions.

We also had to apply to the local council for permission for her to work. They issued us an Employment Permit for her under the Children and Young Persons Acts 1933-1963.

McKneff

lovinituk wrote: »

I'm pretty sure you are supposed to be running a payroll and reporting to HMRC how much you pay her on a monthly basis...

https://www.gov.uk/running-payroll/reporting-to-hmrc

We had a 14 year old doing some work during the school hols and had to include her on the payroll monthly submissions.

We also had to apply to the local council for permission for her to work. They issued us an Employment Permit for her under the Children and Young Persons Acts 1933-1963.

I think it may just apply if you are a company.
The OP is just doing this casually on a weekend
Im happy to be corrected though

purdyoaten

In this ever changing world of payroll I took the test. https://www.gov.uk/register-employer

1. Will you be paying any employees £111 or more a week?
2. No
3. Change this answer
4. 2Will you be employing anyone who’s getting a pension or already has another job?
   
   No
   Change this answer
5. 3Will you be providing any employees with expenses or benefits (eg company cars, accommodation or travel expenses)?
   
   No
   Change this answer
6. 4Will you be using subcontractors under the Construction Industry Scheme (CIS), or are you a limited company reclaiming CIS deductions taken from payments?
   
   No
   Change this answer

1. You don’t need to registerYou’ll still need to keep records of what you pay them.
   
   
   It is confusing and loveinituk may also be correct in that I believe that you must return payments to all employees, whether over or under the limit, if already registered as an employer i.e one returns the full employment costs for each month/week.
   
   
   

SeduLOUs

You don't need to add children under 16 to a payroll unless they earn over tax threshold as they don't pay NI.
https://www.gov.uk/child-employment/paying

Be aware of the restrictions around children working - they need longer breaks, cannot work before 7am or after 7pm, maximum of 2 hours work on Sundays, maximum of 5 hours on Saturdays during school holidays. You also need a permit from the council as mentioned above.
https://www.gov.uk/expenses-if-youre-self-employed/overview

If going down this road, keep very detailed logs of hours worked and payments made (better into a bank account for audit purposes) should you ever get investigated. I suspect it would be easier not to bother for the amount of tax it might save you.

lovinituk

SeduLOUs wrote: »

You don't need to add children under 16 to a payroll unless they earn over tax threshold as they don't pay NI.
https://www.gov.uk/child-employment/paying

Doh! Wish I'd known that before! Ah well, it wasn't that difficult to include her at the time.

SeduLOUs

lovinituk wrote: »

Doh! Wish I'd known that before! Ah well, it wasn't that difficult to include her at the time.

If you are already running a payroll anyway it is probably the easiest way to keep decent records so no harm done!

agrinnall

I suspect that some of the restrictions on child employment don't apply in a family business - after all, many corner shops and restaurants wouldn't turn a profit if it wasn't for family members working long hours for little pay.