Implications of your child earning income from YouTube

Desmond2018
Desmond2018 Posts: 6 Forumite
in Benefits & tax credits
Does anyone know what are implications in terms of Tax, Tax Credits and Benefits if your 15 years old child starts earning income from YouTube?

Let's say earning are cc. £500 a month.

Does the child need to do a Tax Return?
How will that effect the Tax Credits that child's parents receive?
How does it effect Housing Benefit?

Did anyone encounter these circumstances?
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Comments

  • Afraid_of_Kittens
    Afraid_of_Kittens Posts: 342 Forumite
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    Children have the same tax allowances as adults.

    Won't impact on Housing Benefit or Tax Credits as it is the child's income and not the benefit claimant.
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  • Browntoa
    Browntoa Posts: 49,299 Forumite
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    You need to provide proof that the child is not being used to "front" income earned by others . Make sure everything is documented properly from the start and their earnings are paid to an account in their name
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  • Desmond2018
    Desmond2018 Posts: 6 Forumite
    Thank you for replying.

    Do you know if it will impact Child Tax Credit?
    Since obviously, that child is on that credit
  • huckster
    huckster Posts: 4,821 Forumite
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    Will your child turn 16 before 5th April 2019 i.e. before end of current tax year ?

    Just thinking that if the child turns 16 before end of tax year, then this might be an issue ?
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  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    Desmond2018 wrote: »
    Thank you for replying.

    Do you know if it will impact Child Tax Credit?
    Since obviously, that child is on that credit

    As already said, it doesn't impact on tax credits. It's not the child claiming the benefit, it's you. Tax credits is based on your income (and your partners if you have one) not your child's.
  • soolin
    soolin Posts: 72,195 Ambassador
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    There are some age requirements on youtube, so those will need to be checked as well otherwise the income may have to go via the parent's account.

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  • Pixiedust22
    Pixiedust22 Posts: 25 Forumite
    I don't know the answer but just wanted to say that's pretty awesome for a 15 year old, well done to your child!
  • Desmond2018
    Desmond2018 Posts: 6 Forumite
    Yup, that's been done... linked to an approved adsense account. But, paid into child's bank account and obviously Youtube channel run by him...
  • Desmond2018
    Desmond2018 Posts: 6 Forumite
    Darksparkle wrote: »
    As already said, it doesn't impact on tax credits. It's not the child claiming the benefit, it's you. Tax credits is based on your income (and your partners if you have one) not your child's.
    I hope this is true... And interestingly you are right, they never ask about income of your children, only of your partner.

    So, I'm assuming, earning income, doesn't make the child non-dependant or anything like that.
  • Desmond2018
    Desmond2018 Posts: 6 Forumite
    Pixiedust22 wrote: »
    I don't know the answer but just wanted to say that's pretty awesome for a 15 year old, well done to your child!

    Oh, to my understanding lots of kids are making money on YouTube now-days. But, todate I haven't come across a case online that shows how to deal with that income as in my circumstances...
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