employing my 16 year

employing my 16 year

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my 16 year old daughter is in full time education. I would like to "pay her a wage" for the work she helps me with "computer whizz!/admin etc..". At the moment she receives generous pocket money.

Is this possible? does the age make a difference?

many thanks for your help
marie

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By User deleted
04th Jan 2007 10:46

No problem
Presumably this is some type of "Saturday job". Pay your daughter the going rate for the work, complete form P46 and record the payments in your own records. There is a form that students can complete for holiday work which means that you do not have to deduct paye. I'm not sure of the form number but other contributors will no doubt let you know.

The fact that she is your daughter and is in full time education makes no difference - as long as this is not just a way of diverting non tax deductible pocket money payments into tax deductible wages

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Euan's picture
By Euan MacLennan
04th Jan 2007 11:23

P38(S)
The form for students is the P38(S), but it applies only to work done in the holidays and gives a total exemption from tax, but not NIC.

For work done during term time, you need the P46 but as she will tick circumstance A to say that it is her first job since April 2006, she will be on a code of 503L cumulative, so there is no difference as she will pay no tax until her earnings exceed £5,035

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