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    • Desmond2018
    • By Desmond2018 7th Jul 18, 11:37 PM
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    Desmond2018
    Implications of your child earning income from YouTube
    • #1
    • 7th Jul 18, 11:37 PM
    Implications of your child earning income from YouTube 7th Jul 18 at 11:37 PM
    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?
Page 1
    • Afraid of Kittens
    • By Afraid of Kittens 8th Jul 18, 5:51 AM
    • 147 Posts
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    Afraid of Kittens
    • #2
    • 8th Jul 18, 5:51 AM
    • #2
    • 8th Jul 18, 5:51 AM
    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.
    • Browntoa
    • By Browntoa 8th Jul 18, 7:12 AM
    • 33,544 Posts
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    Browntoa
    • #3
    • 8th Jul 18, 7:12 AM
    • #3
    • 8th Jul 18, 7:12 AM
    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
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's and Discount Code boards which means I volunteer to help get your forum questions answered and keep the forum runnning smoothly .However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.
    • Desmond2018
    • By Desmond2018 8th Jul 18, 11:43 PM
    • 6 Posts
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    Desmond2018
    • #4
    • 8th Jul 18, 11:43 PM
    • #4
    • 8th Jul 18, 11:43 PM
    Thank you for replying.

    Do you know if it will impact Child Tax Credit?
    Since obviously, that child is on that credit
    • huckster
    • By huckster 9th Jul 18, 6:00 AM
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    huckster
    • #5
    • 9th Jul 18, 6:00 AM
    • #5
    • 9th Jul 18, 6:00 AM
    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 ?
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
    • Darksparkle
    • By Darksparkle 9th Jul 18, 6:07 AM
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    Darksparkle
    • #6
    • 9th Jul 18, 6:07 AM
    • #6
    • 9th Jul 18, 6:07 AM
    Thank you for replying.

    Do you know if it will impact Child Tax Credit?
    Since obviously, that child is on that credit
    Originally posted by Desmond2018
    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
    • By soolin 9th Jul 18, 9:37 AM
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    soolin
    • #7
    • 9th Jul 18, 9:37 AM
    • #7
    • 9th Jul 18, 9:37 AM
    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.

    https://support.google.com/adsense/answer/2533300?hl=en-GB
    I'm the Board Guide for the Ebay Board , Charities Board , Dosh & Disability , Up Your Income and the Local MoneySaving-England board which means I volunteer to help get your forum questions answered and keep the forum running smoothly. However, do remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com
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    • Pixiedust22
    • By Pixiedust22 9th Jul 18, 12:42 PM
    • 10 Posts
    • 2 Thanks
    Pixiedust22
    • #8
    • 9th Jul 18, 12:42 PM
    • #8
    • 9th Jul 18, 12:42 PM
    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
    • By Desmond2018 9th Jul 18, 1:42 PM
    • 6 Posts
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    Desmond2018
    • #9
    • 9th Jul 18, 1:42 PM
    • #9
    • 9th Jul 18, 1:42 PM
    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
    • By Desmond2018 9th Jul 18, 1:48 PM
    • 6 Posts
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    Desmond2018
    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.
    Originally posted by Darksparkle
    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
    • By Desmond2018 9th Jul 18, 1:51 PM
    • 6 Posts
    • 0 Thanks
    Desmond2018
    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!
    Originally posted by Pixiedust22
    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...
    • Desmond2018
    • By Desmond2018 9th Jul 18, 1:54 PM
    • 6 Posts
    • 0 Thanks
    Desmond2018
    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 ?
    Originally posted by huckster
    Yup, he will turn 16 before 5th April 2019, but then continue education... not sure if you are still in education, if it helps or will he be considered as non-dependant etc.
    • dippy3103
    • By dippy3103 10th Jul 18, 9:11 AM
    • 1,844 Posts
    • 2,689 Thanks
    dippy3103
    Fair play to him- sounds like your son is going places
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