Tax, unearned income

snipe · Aug 5, 2023

My son is 9 and not allowed earn money until 14years old. If we had a small wind turbine on our land would he be allowed to have the ground rent from that, as it’s classed as unearned income. if needed he could rent the area of land off the farm for £1 then sub let it to the turbine company.

Steevo · Aug 5, 2023

snipe said:
My son is 9 and not allowed earn money until 14years old. If we had a small wind turbine on our land would he be allowed to have the ground rent from that, as it’s classed as unearned income. if needed he could rent the area of land off the farm for £1 then sub let it to the turbine company.

He's a savvy kid that's for sure to be thinking up all of this.

He'll be sub-letting the top half of his bunk bed to the government to house migrants before long!

dave78+ · Aug 5, 2023

snipe said:
My son is 9 and not allowed earn money until 14years old. If we had a small wind turbine on our land would he be allowed to have the ground rent from that, as it’s classed as unearned income. if needed he could rent the area of land off the farm for £1 then sub let it to the turbine company.

I was working as a van-boy on the London Evening Standard at the age of 9-years in 1953. I also delivered newspapers to about 80 homes before going to our school. Kids are allowed to earn money.

serf · Aug 5, 2023

dave78+ said:
I was working as a van-boy on the London Evening Standard at the age of 9-years in 1953. I also delivered newspapers to about 80 homes before going to our school. Kids are allowed to earn money.View attachment 1128492

Flippin Eck you been about a bit ain't ya ,
from barrow boy to nuclear scientist

And your still only 40

livestock 1 · Aug 5, 2023

You will need to bring him into the business as a director with a meaningful percentage of you want to save tax 20% is a meaningful percentage.
Be prepared for some investigative follow up. There’s nothing wrong with what you are doing

dave78+ · Aug 5, 2023

serf said:
Flippin Eck you been about a bit ain't ya ,
from barrow boy to nuclear scientist

And your still only 40

Your words, not mine.

Exfarmer · Aug 5, 2023

sadly you will have to pay the tax if the income exceeds £100
you need to start breeding fast

dave78+ · Aug 5, 2023

Exfarmer said:
sadly you will have to pay the tax if the income exceeds £100
you need to start breeding fast

Nah. My income was only three-shillings a week.

BRB John · Aug 5, 2023

I'm not quite catching the point here?
Do you want your 9 year old son to be a partner so you can split your profit into smaller numbers to reduce tax paid on your profit?
Might as well stick your dogs on as partners too....

livestock 1 · Aug 5, 2023

You can get him to sign a side agreement as time goes on to stop any lady lodgers taking a business interest in wind turbines

Still Farming · Aug 5, 2023

Earn all your money before self assessments kick in and the when retire possibly??
Kids accounts where always gross income paid.

Ben B · Aug 5, 2023

BRB John said:
I'm not quite catching the point here?
Do you want your 9 year old son to be a partner so you can split your profit into smaller numbers to reduce tax paid on your profit?
Might as well stick your dogs on as partners too....

Is the dog considered slient partner?

BRB John · Aug 5, 2023

Ben B said:
Is the dog considered slient partner?

He's anything but silent.

Rich_ard · Aug 5, 2023

Not sure how he did it but we got wages as kids. This was only an accounting thing as we never saw it untill later on. It was just a balance in the books. Not sure what age we had to be so he could do it though!

Ben B · Aug 5, 2023

BRB John said:
He's anything but silent.

I can't understand dog so..... so that makes it silent in my books

Anyone know a rich dog that can sign its name and looking to buy country in Australia??

Still Farming · Aug 5, 2023

Rich_ard said:
Not sure how he did it but we got wages as kids. This was only an accounting thing as we never saw it untill later on. It was just a balance in the books. Not sure what age we had to be so he could do it though!

Pocket money?
Is that banned too these days??

Rich_ard · Aug 5, 2023

Still Farming said:
Pocket money?
Is that banned too these days??

In lieu of a phone perhaps

Still Farming · Aug 5, 2023

Rich_ard said:
In lieu of a phone perhaps

Most won't come out of their houses these days or glued to their phones.

dave78+ · Aug 5, 2023

Still Farming said:
Most won't come out of their houses these days or glued to their phones.

Better to stay indoors to avoid being stabbed.

Exfarmer · Aug 5, 2023

Still Farming said:
Pocket money?
Is that banned too these days??

You can give any amount to your children provided it is out of taxed income.

Rich_ard said:
Not sure how he did it but we got wages as kids. This was only an accounting thing as we never saw it untill later on. It was just a balance in the books. Not sure what age we had to be so he could do it though!

children can earn money but it must be commensurate to the work they do and they do have their own Tax free allowance of £12,500 and no NI to pay till 16
be aware the revenue are well aware of parents paying children and you can expect investigations if your children all earn the limit, for a couple of hours a week

Site rent would I have thought only possible if the child owned the site beforehand and took it directly, which is possible of course
serious advice is required before proceeding.

Tax, unearned income

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0 %

Up to 25%

25-50%

50-75%

75-100%

100% I’ve had enough of farming!

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