Rich_ard
Member
What are school fees for a 9 y o
Tax, unearned income
- Thread starter snipe
- Start date
snipe
Member
- Location
- west yorkshire
Around £13000
Rich_ard
Member
Jings
Exfarmer
Member
- Location
- Bury St Edmunds
without gifting him the site I see little chance of paying him £12,500 a year as earnings
Then you run the risk he puts it on Ebay the next day
snipe
Member
- Location
- west yorkshire
probably swap it for a moto cross bike. But could he rent the site. ?without gifting him the site I see little chance of paying him £12,500 a year as earnings
Then you run the risk he puts it on Ebay the next day
- Location
- Somerset
This is something that can be done and can be really useful tax planning which I have in place for some of my clients, but is also something that can go very wrong.
There is a lot of legislation around this and there needs to be enough distance between the child and where they start earning from.
Good advice is vital, bad advice will land you in hot water. Happy to take a pm if you want.
There is a lot of legislation around this and there needs to be enough distance between the child and where they start earning from.
Good advice is vital, bad advice will land you in hot water. Happy to take a pm if you want.
Can you adopt me as your step-son please?
Your son works every hour on the farm when he’s not at school of course, and you pay him by a stable income arrangement which is why he’s paid the same every month into a savings account in his name?.
Exfarmer
Member
- Location
- Bury St Edmunds
snipe
Member
- Location
- west yorkshire
my kids 10 & 12 have the same tax free allowance as any of us - they pay tax on any income above that
perfectly legit/ legal to use their tax free allowance - both mine have rental property income that they use to pay some of their own school fees !
if gifting kids assets it wise to use a trust to make things divorce proof / stop them spending it on something daft !
Why shouldn't the child be a budding business type who buys potatoes from the farm, at the current market price, and then sells them at the roadside, making a profit.
All legal. I know that a lot of townie kids earn a tidy sum, over the school holidays, mowing gardens. Doubt HMRC bothers them.
Are the children paid for doing school homework yet?
Exfarmer
Member
- Location
- Bury St Edmunds
The issue will only arise when it appears that the children are just being used as a tax dodge.
Clive is correct, but you must get it right which means setting up trusts and that has long term implications, although I believe they are lot easier to unwind today than 50 years ago.
My solicitor always used to advise me only to set up a trust if you were happy to make a solicitor his fortune.
I have said elsewhere that I know an heiress whose family were one of the richest in the world
They are the beneficiaries of a trust which pays out for any education the world will provide. She went to the best schools then Oxford, her children have been to Benenden then, some of the worlds top universities , but that is it, no more, make your way in the world .
Very wise move on the part of the guy who started this world famous company and put his family money out of the way of the rapacious taxman.
Except, the trust , an American one, looks after several billion dollars growing every day. The trust, employs the finest brains to administer itself, and rightly they pay themselves the going rate, and it starts with 8 figures
Meanwhile my friend who is separated from her husband lives a very quiet life on her modest pension
snipe
Member
- Location
- west yorkshire
Could my children rent some land off the farm that has a turbine or advertising board on it for a small fee and then claim the rent direct from the turbine/ad company
within a discretionary trust you could yes
it’s complex but possible so needs professional advice involving accountants and solicitors as well as reducing income tax a bit it can also be useful re IHT planning
up to 45% and the NI per child per year