Getting paid into account with another name

Discussion in 'Accounts & Finance' started by adamoafc, Jan 11, 2021.

  1. adamoafc

    adamoafc UKBF Newcomer Free Member

    2 0
    I’m under 18, a freelancer and am doing a one-off piece of work for an Australian company.

    I was wondering if there’s anything wrong with being paid into an account in a parent’s name as long as it is listed on the invoice as the account to pay into, my trading name is on the invoice and I keep detailed records (e.g. Their payment into paypal, PayPal withdrawal to parent’s bank, parent’s bank transfer to my bank).

    If they are happy with an invoice over stripe or with paying into my UK bank account then I won’t have to deal with this, but it might be something which will happen.
    Posted: Jan 11, 2021 By: adamoafc Member since: Jan 11, 2021
  2. Scalloway

    Scalloway UKBF Legend Free Member

    16,770 3,561
    As long as there is a paper trail that shows what happened I think it should be ok. Remember that includes making sure that it is clear enough that your parents don't get pursued to pay tax on it.
    Posted: Jan 11, 2021 By: Scalloway Member since: Jun 6, 2010
  3. paulears

    paulears UKBF Big Shot Full Member

    4,649 1,250
    Do the Australian company realise they’re dealing with an under 18? Many will think it risky for the contractual perspective. Having say, fr smith on the payment system instead of tg smith will not normally be an issue, BUT remember than two layer security is now a pain for this. You need the account numbers and swift/IBAN/ sort code numbers but also name on the account and if it is personal or business. Will that cause grief. You’ll probably find you are also not a freelancer from the status perspective. The tax man might struggle with that as an under 18.
    Posted: Jan 12, 2021 By: paulears Member since: Jan 7, 2015
  4. adamoafc

    adamoafc UKBF Newcomer Free Member

    2 0
    I haven’t let them know I’m under 18 but I’m over 16 so never had any problems in the UK. I’m registered with HMRC for self-assessment already. If they’re happy to pay straight into a UK bank account, then they can pay into mine - any places I’ve freelanced for in the UK, I’ve just used Bacs for getting paid.
    Posted: Jan 12, 2021 By: adamoafc Member since: Jan 11, 2021
  5. paulears

    paulears UKBF Big Shot Full Member

    4,649 1,250
    I must admit that getting paid by new companies is getting harder, and also me paying others - I tried to pay Fedex by BACs, following their account number and sort code on the invoice - it got rejected repeatedly. Turned out the account was still in the TNT name following the merger. Entering that let me pay a bill. Overseas transactions are getting harder - I don't think it's Covid, but international money laundering. I had to call Santander to find codes that an american bank were asking for for a payment transfer. Remember that self-assessment isn't the same as self-employment. If HMRC have given you a UTR number, you're on the way - but under 18s need real advice with student loans and other 'benefits' - you don't want to shut off one system for another. If you are a student you can't be self-employed, and if you are self-employed, can you claim to be a student at the same time. Student status is difficult to give up because it's worth a lot to some - maybe you've just gone straight to work, so being a student is not important. I do know that HMRC find using other people's bank accounts suspicious, and of course that person then might have to explain your transactions?
    Posted: Jan 12, 2021 By: paulears Member since: Jan 7, 2015
  6. fc-ramon

    fc-ramon UKBF Contributor Free Member

    49 9
    I believe student's can't claim for "benefits" (such as uc) anyway. The only money we'd get is student loans (or a bursary / tuition in Scotland). So I don't think it'll effect him that much if he is a student or self-employed (or both at the same time!)

    Ps. I know many of my friends are students in college or uni and still have side businesses
    Posted: Jan 12, 2021 By: fc-ramon Member since: Nov 6, 2020