How To Pay Children Through a UK Limited Company - Rules & Benefits

[@mindaugastuzikas]

Thank you for very informative video. As always very professional and self-explanatory.

[@UK-Property-Tax-Accountants]

Thank you ever so much for the very kind comments. It’s certainly had a positive impact on my upcoming day, enjoy yours 🙏

[@unisi612]

Question: Can one do this through a SSAS or Trust? Or is this only through Limited Companies? Thanks a lot for all the knowledge you share here! 🙏🏽🕊️❤️‍🔥 And happy new year 2024 to you, your loved ones and all the community here!

[@UK-Property-Tax-Accountants]

I am sure both a SSAS and a trust can pay children. Maybe a video for the future. Thank you 🙏 for the kind words

[@marcusthomas9843]

Fantastic video

[@UK-Property-Tax-Accountants]

Thank you for the kind comment 🙏

[@amparito5312]

Can you add your children as share holders

[@UK-Property-Tax-Accountants]

Yes, you add children as shareholders 👍

[@gogoasainfuriata762]

What about children being share holders or what about home educating children?

[@UK-Property-Tax-Accountants]

Adult children could be paid out of a limited company. However, if you were trying to pay a minor, then you will have issues with the income been charged tax on you as the parents, not the child.

[@UK-Property-Tax-Accountants]

There are no announcers for this Education element

[@GOATLAVISH777]

Can i do the same with my parents?

[@UK-Property-Tax-Accountants]

There are certainly possibilities to make that happen 👍

[@anna3046]

How can you pay your child if they have not been issued with a NI number?

[@UK-Property-Tax-Accountants]

I guess with great difficulty

[@DianneSullivan]

I came here with the same question @anna3046. Simon's answer "I guess with great difficulty" doesn't answer the question. So I asked chatgpt who gave this answer >. National Insurance Number: While it is not strictly necessary for a child under 16 to have a National Insurance number to work, they will need one once they turn 16. You can still employ them without a National Insurance number, but you must keep accurate records of their employment and earnings. When they turn 16, they will be automatically issued a National Insurance number. Obviously we should treat AI answers with caution but this gives me the starting point I was looking for as I couldn't understand Simon's answer that we could employ our children but need an NI number, which we know they don't get until they are 16 Hope this helps.

[@UK-Property-Tax-Accountants]

@DianneSullivan The points I am making is nothing to do with national insurance rather than the income tax of the child. HMRC take a dim view of people paying their own children out of a limited company where the money so back to the parents. To prevent this HMRC will try and tax the money as though it is in the hands of the parent. Again, this is nothing to do with the issue of national insurance numbers rather than tax planning in the purist sense

[@DianneSullivan]

@@UK-Property-Tax-Accountants Ah I must have misunderstood the original question. I thought it meant "Can you pay your child if they don't have an NI number" likely because that's my question. I understand your point about the money having to go to the child. I wasn't sure if there is a mandatory requirement to have an NI number. Thanks for clearing up that you weren't talking about NI in a question about NI lol

[@UK-Property-Tax-Accountants]

@DianneSullivan the question could be about national insurance. However, my point is that you cannot just focus on one tax element and must consider all taxes when providing answers. This is my job where Chat GPT will ignore other taxes when answering a direct question