Best investment for working child?

Stealth07

My Child has started doing paid commercial work, I'm not 100% clear on the paying VAT situation if anyone could advise?

Also any recommendations on where to save with or invest for best returns?

Thanks!

sheramber

How old is your child?

Stealth07

11 years old

xylophone

Give HMRC a ring to check your child's situation - they will have dealt with child actors etc before!

xylophone

How much do you expect your child to earn?

jimjames

Stealth07 wrote: »

My Child has started doing paid commercial work, I'm not 100% clear on the paying VAT situation if anyone could advise?

Also any recommendations on where to save with or invest for best returns?

Thanks!

Any particular reason why they'll be paying VAT or is that a typo? Everyone has the same allowance so if they earn in excess of that they'll be paying income tax and possibly NI.

bigadaj

jimjames wrote: »

Any particular reason why they'll be paying VAT or is that a typo? Everyone has the same allowance so if they earn in excess of that they'll be paying income tax and possibly NI.

Yes, vat limit is a bit higher than liability for paying basic rate tax!

george4064

Your 11 year old child probably isn't earning more than the income allowance (which is tax free), unless she is a famous actor??

As others have said, children also get the same income allowance just like any other ordinary person. No more and no less.

jimjames

bigadaj wrote: »

Yes, vat limit is a bit higher than liability for paying basic rate tax!

But do individuals have to register for VAT?

xylophone

https://www.gov.uk/vat-registration/when-to-register

OP is likely to have meant income tax -

https://www.gov.uk/child-employment/paying

bigadaj

jimjames wrote: »

But do individuals have to register for VAT?

Depends on how they are trading I suppose.