Under 16 Self Assessment/Tax Returns

[Abrch210x]

I hope you’re doing well!





I’m 14 years old and run a dropshipping business on Depop. Since I’m under 16, I can’t register as self-employed yet, so I’m wondering if I can declare the income from my business under my parent’s name until I turn 16 and can register myself.





I have a few questions and would really appreciate your help:

1. Can I declare the income from my business under my parent’s name for tax purposes until I’m old enough to register as self-employed?
2. Will the money I make from my business count as part of our household income? Could it affect my parent’s eligibility for things like housing benefit or Universal Credit?
3. If the income is reported by my parent, is there a special way to handle it with HMRC, and should it still be considered my income for things like benefits?

Thank you so much for your time and help! I’m looking forward to your reply.

 

[DWS]

I hope you’re doing well!





I’m 14 years old and run a dropshipping business on Depop. Since I’m under 16, I can’t register as self-employed yet, so I’m wondering if I can declare the income from my business under my parent’s name until I turn 16 and can register myself.





I have a few questions and would really appreciate your help:

1. Can I declare the income from my business under my parent’s name for tax purposes until I’m old enough to register as self-employed?
2. Will the money I make from my business count as part of our household income? Could it affect my parent’s eligibility for things like housing benefit or Universal Credit?
3. If the income is reported by my parent, is there a special way to handle it with HMRC, and should it still be considered my income for things like benefits?

Thank you so much for your time and help! I’m looking forward to your reply.

I thought it was possible for an under 16 year old to obtain a UTR, if so then it should also be possible to submit a tax return all be it maybe a paper return.
If you do submit the profits through your parents then I would assume that it would affect their tax and benefits position.

 

[MikeJ]

There's some info here...

Self Assessment for child - Community Forum - GOV.UK

but it looks like you have to do it in writing

 

[Newchodge]

It is your income, you have to declare it as your income. It is not your parents' income and they should not be paying tax on it.

Most benefits take into account household income, so your income may very well affect any benefits that come into the household. This is because the state believes that if anyone is earning, whatever their age, they should contribute to household expense.

 

[elaine@cheapaccounting]

Well done on your business.

It might just be worth mentioning the "Trading Allowance" which means that if your turnover is under £1,000 you do not need to do a self assessment.

It's covered in more detail at https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

It may help .....

Good luck