Tax on under 16s

Legend100

Just wondering has anyone come across this situation before.

Since a child is not meant to work until they are 16 (except under certain circumstances) they do not receive a pps number until they are 16 and hence will not receive the personal credit until turning sixteen

one of the allowed exceptions for working a full 38 hour week when under 16 is when working on a film, does anyone know what the tax treatment should be in paye terms for a child actor?

I would think emergency tax but it seems very harsh given that they could earn quite a significant amount

SaschaKyiv

A PPS number can be applied for at any age.

The form you need is a Form Reg 1 and is available from your local social welfare office only. The child will have to provide proof of identity and residential address also. The pps no. is then received through the post in a number of weeks.

After that the tax position is the same as for anyone else. The child is allocated a 20% Standard Rate Band and Tax Credits etc.

gerrybbadd

I think PPS Numbers are now given at birth guys.

Kristopherus

gerrybbadd wrote: »

I think PPS Numbers are now given at birth guys.

Correct. Contact DSW in Letterkenny.

Ticktactoe

Get a PPSN and also get the employers registration number. Ring revenue and set the child up under the employers registration number. Also have the childs start date and any other payroll details at hand if possible ie. work number or payroll number. Once the child is set up he will received his tax credits and Standard rate cut of off and be taxed the same as any individual. If you do not set the child up the employer will have to implement emergency tax - this takes affect over 8 weeks starting off with very little tax been deducted on the first week to a 41% tax been deducated at week 8. :rolleyes:

gerrybbadd

Ticktactoe wrote: »

Get a PPSN and also get the employers registration number. Ring revenue and set the child up under the employers registration number. Also have the childs start date and any other payroll details at hand if possible ie. work number or payroll number. Once the child is set up he will received his tax credits and Standard rate cut of off and be taxed the same as any individual. If you do not set the child up the employer will have to implement emergency tax - this takes affect over 8 weeks starting off with very little tax been deducted on the first week to a 41% tax been deducated at week 8. :rolleyes:

The best thing to do is as stated above. The general assumption is that it's the employer's responsibility to register new employees. This is kinda true, (Revenue employer's guide to PAYE states they should let the tax office know within 9 working days) but each employees tax affairs are his/ her own responsibility too, so it's a bit of a catch 22 situation.

sherdydan

i was workin at 14 years of age, and the situation is the same as any other employee, i had the same tax credits etc as i do now at 18 years of age, also it isnt ilegal to work under 16 years of age, just that before 16 a child is allowed work a maximum of 14 hours a week during school terms. a maximum of 2 hours after school on school days and a maximum of 4 hours on saturdays.