Children’s Earnings viral video

GKOMW

Hi
My toddler starred in a video that went viral and made her some money. This all started when I posted the video on my YouTube account and media company spotted it. I want her to have all the income from it but fear I may have messed up. I signed the contract as the owner of the video and the earnings are in my paypal/bank account. I want to set up an account for her to transfer the money into, but I am now worried that I may be liable for tax (I am a employed.) If all the earnings the video made were to be deposited in her account will that be enough to satisfy HMRC. The earnings are below the child’s personalTax threshold. Thanks

TheCyclingProgrammer

Presumably you made the video? If you made the video, signed the contract for media rights and received the money I’d say it was your video and your income, not your daughter’s unfortunately.

Also bear in mind, if it’s a significant amount and you put it into an account in her name, if it earns more than £100 interest in a year then you’ll be taxed on that too, unless you put it in a junior ISA.

agrinnall

Your toddler can't sign a contract anyway (practically and legally) so it's either pay the money to you or don't have any at all.