Tax implications of this

[IanG]

http://www.itv.com/news/granada/2014-11-21/schoolboy-suspended-after-making-14k-selling-crisps/

Just commented on it, want to make sure I'm not talking rubbish.

It would appear although that £14k is profit, its been accumulated in the period since some time in 2011.

 

[Scalloway]

I presume he has no other earnings so £14,000 over three years is well below the personal allowance.

 

[Annoying Donkey]

Typical school. Don't want him to learn entrepreneurial skills. He might actually become a useful member of society...!

 

[Scalloway]

More than once I have read in an entrepreneur's biography that they started by selling stuff to their fellow pupils.

 

[mckellar]

Typical school. Don't want him to learn entrepreneurial skills. He might actually become a useful member of society...!

This is similar to when I was at secondary school (I'm 27 now). Basically we as a year group were pushed towards university to 'prove ourselves' I went to a reasonably good school and most people went to uni or college the year before.

The reason schools push university is because it is printer in the newspapers how many pupils from the year graduated to university.

I went to uni, didn't last long, set myself up in business, and from the looks of it - I seem to be doing fairy well in comparison to some who spent 4 years getting into debt.

 

[#ServicedOffices]

IMO: My advice to him is not to burn the cash on a degree. Paper (qualification) means very little, paper (cash) means so very much. Seems quite bright but not academically. He doesn't need to try and prove himself academically - rarely pays off anymore, most people with those degrees get no further and you cannot really teach someone to be a good entrepreneur - its something you are born with or develop from within.

I seem to think he might have got some assistance however, wholesaler would require 18+ generally and VAT/Company details sometimes with trade references, a car/van to transport the goods, some initial cash to buy it (could have been saved up of course) etc.

 

[IanG]

I presume he has no other earnings so £14,000 over three years is well below the personal allowance.

I had presumed as much and come to the same conclusion but wasn't sure what bearing his age had on things.