Originally posted by mudskipper
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Yeah, but I think the point there is that the expenses were being funded by the public purse. If you employ your own offspring, the money comes from your limited. As long as the directors are happy with the arrangement, there isn't an issue. Probably.
These links might help. They cover employing children and also empoying students during holiday periods. For all my bleating if it came down to it and I had genuine work he could do I would be looking at thsi as well..
HM Revenue & Customs: Student employees
http://www.hmrc.gov.uk/forms/p38s.pdf
https://www.gov.uk/contract-types-an...and-volunteers
Tax rules about employing family members | Start Up Donut
What about employing my children?
Subject to employment laws, you can employ your children in the business. Again you must pay them the relevant national minimum wage for the hours they work.
It may also mean that because of the payments made to your children you must register with HMRC as an employer. Be sure to check or else you could incur fines and penalties.
What if my offspring are students?
If you employ a student at any time other than their normal holidays, you operate PAYE as normal. However, if you have children at college or university and you employ them solely during the summer, winter or Easter holidays, you may be able to apply special rules to their pay which can make the administration simpler and negate the need for you to register as an employer with HMRC.
If you meet this criteria, you may be able to pay the student without deducting tax, although in most cases you will still have to deduct and account for national insurance. Full details can be found on the HMRC website.
Subject to employment laws, you can employ your children in the business. Again you must pay them the relevant national minimum wage for the hours they work.
It may also mean that because of the payments made to your children you must register with HMRC as an employer. Be sure to check or else you could incur fines and penalties.
What if my offspring are students?
If you employ a student at any time other than their normal holidays, you operate PAYE as normal. However, if you have children at college or university and you employ them solely during the summer, winter or Easter holidays, you may be able to apply special rules to their pay which can make the administration simpler and negate the need for you to register as an employer with HMRC.
If you meet this criteria, you may be able to pay the student without deducting tax, although in most cases you will still have to deduct and account for national insurance. Full details can be found on the HMRC website.
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