Wednesday, June 8th, 2022
Getting your children to help in your business is a useful way of getting an extra pair of hands for you and can earn them some extra pocket money. The money that you pay them will also be a tax-deductible expense in the business.
There are strict rules you must adhere to when employing your children (someone below the age of 18).
A permit is usually required from the local council’s education department before you can employ someone below the age of 16.
- Under 13:
- Can work part-time depending on local by-laws. There may be restrictions in place regarding working hours, conditions of work & type of work they can do.
- You should check first before employing your 13-year-old
- Can work part-time in areas considered ‘light’ (e.g office work, shelf stacking etc.)
- Can work in a café or restaurant but not in the kitchens.
- Children cannot work during school hours (except during weekends and school holidays) and can only work between 7am and 7pm
- They can work up to 2 hours per day on school days and Sundays and up to 5 hours per day on Saturdays and during school holidays
- They cannot work more than 12 hours per week during term time or 25 hours per week during school holidays.
- 15 – 17-year-olds:
- The same rules apply as above except for the following:
- They can work up to 2 hours per day on school days and Sundays and up to 8 hours per day on Saturdays and during school holidays
- They cannot work more than 12 hours per week during term time or 35 hours per week during school holidays.
How much can you pay?
- 13 – 15-year-olds:
- Not entitled to the minimum wage
- Do not pay National Insurance so they only need to be included on your payroll if their total income is over their personal allowance
- The rate paid must be commercially justifiable. It should be no more than you would pay a non-family member with the same level of skills and experience.
- 16- & 17-year-olds:
- Entitled to the national minimum wage
- If you are a registered employer, then you need to include them on your payroll.
- If you are not a registered employer but they earn above the Lower Earnings limit (currently £123 per week for 2022/23) then you will need to register as an employer and submit payroll reports to HMRC.
Employing your children can provide a financial benefit for both your business and your children. Please get in touch with us today if you would like any guidance on this subject.
Thursday, March 14th, 2019
NATIONAL MINIMUM WAGE / NATIONAL LIVING WAGE
As of 1st April 2019 the National Minimum Wage and National Living Wage is to increase.
The new rates are as follows:
|25 years old and over
|21-24 years old
|18-20 years old
|16-17 years old
(all apprentices under age 19 AND any apprentice, regardless of age, in first year of apprenticeship will be on £3.90 per hour as of 1st April 2019)
MINIMUM PENSION CONTRIBUTIONS
As of 6th April 2019 the minimum amount that employers and employees must pay into their automatic enrolment pension scheme is also increasing.
The new contribution rates, as shown in the table below, will apply to your employees starting from the payment period within which 6th April 2019 falls.
||Employer Minimum Contribution
|Total Minimum Contribution
|6th April 2019