16 yr old

CyberCatK

Hi, my daughter (aged 16), wants to set up a business. She's needs insurance but you need to be 18 to get it.
If I run the business in my name, can she invoice me, and I pay her the profits (I don't want to pay tax on her business)

tacpot12

You would be better off talking to an accountant about whether you can set up a company with the two of you as directors, but with her holding a class of shares that entitles her to the profits of the business, and you holding a class of shares that doesn't entitle you to any profits. 

Mistral001

Two points:

1. The only insurance that a business needs, by law, is employer insurance. 

2. 16-year-olds can get insurance for mopeds and small motorbikes, so 16-year-olds can take out some forms of insurance.  

  

mlz1413

CyberCatK said:

Hi, my daughter (aged 16), wants to set up a business. She's needs insurance but you need to be 18 to get it.
If I run the business in my name, can she invoice me, and I pay her the profits (I don't want to pay tax on her business)

I'm a bit confused,  if your daughter is the business and you pay the insurance then you would be insured and not her.

The other suggestion about setting up a company with Shares is a good idea, although more expensive then just being self employed as then the company employs you, so it needs more setting up. IE a bank account and regulated filing of accounts. 

I did a quick Google search and found Ashburnham Insurance Services 0800 169 6137 offering Public Liability cover for 16 and 17yos.
There are probably loads more but that was on 1 minute search for "business insurance for 16 year old".

Also if you aren't confident enough to do a self assessment tax return on your own then definitely talk to an accountant before setting up the business.  Accountants normally do an initial chat for free so don't be worried about talking to 2 or 3 until you find someone you are comfortable to talk to. 

Good luck to your daughter,  lovely to see someone wanting to work for themselves straight out of education.