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What To Do With the Kids This Summer

5 July 2019
Mark Friend
Reducing Tax, Accounting & Compliance, Payroll, People


If you need help with summer childcare (children under 11 or under 17 if disabled), then working parents are being reminded by the Government that they can use Tax-Free Childcare (TFC), which is worth up to £2,000 per child per year, to help pay for regulated holiday clubs during the school holidays. To see whether you are eligible the Government has set up a new website- childcare choices. Basically for every £8 you pay the Government tops it up by £2.

TFC is available if you and your partner work more than 16 hours a week and neither of you earns over £100,000 a year. Unlike childcare vouchers, this scheme is not administered via an employer — so good news for the self-employed. If you are receiving childcare vouchers then this scheme will not be available to you and you should continue to use your existing childcare voucher scheme. Please note the childcare voucher scheme is only available to those who entered the scheme pre April 2018 and are still members.

Older kids

Here’s a thought, how about getting your kids to help out in the business this summer and pay them some wages? If your child is up for earnings some pocket money then the general rules for children working  can be found here.

There are specific rules during term times. During school holidays the rules are as follows:

 During school holidays 13 to 14-year-olds are only allowed to work a maximum of 25 hours a week. This includes:

  • a maximum of 5 hours on weekdays and Saturdays
  • a maximum of 2 hours on Sunday

During school holidays 15 to 16-year-olds can only work a maximum of 35 hours a week. This includes:

  • a maximum of 8 hours on weekdays and Saturdays
  • a maximum of 2 hours on Sunday

When they reach the age of 13, they’re legally allowed to be employed to do light work. Under 13 you have to be really careful and only certain jobs like dog walking or babysitting are allowed. For 13 years olds light work is classed as anything that does not affect a child’s safety, education or health and could be jobs such as a paper round or working in a shop.

At the age of 14, the net widens slightly, and children can be employed in a greater variety of jobs.

Once they reach 16 the restrictions ease, and kids are then classed as a young worker. There’s more choice available in the type of work that can be legally carried out. This increases again at the age of 18, when adult work rights kick in.

Wages to your kids is highly tax efficient as they can earn up to their personal allowance with no tax deducted. Please also note an individual usually gets sent a National Insurance number (NINO) just before their 16th birthday as they only become liable to NI when they are 16 or over.

Basically your child won’t have to go on your payroll if they are under 16 and their total income is under their personal allowance.

Our advice is make sure you document everything and that you complete a starter checklist for your child. Speak to our tax team about income for your child over the summer holidays.

The content in this blog is correct as at 05/07/2019. See terms and conditions.

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