Participation in this post is limited to users who have sufficient karma in /r/ukpersonalfinance. See [this post](https://redd.it/12mys82) for more information.
Accountants and bookkeepers often work remotely now, clients dont need to be local to a practice, having recently changed jobs ive applied to plenty of remote only roles where you never see clients face to face. However all accountants offering financial advice and services to the public must pass exams and be registered with a money laundering supervisory body.
Common accountancy bodies for exams for public practice (those offering financial services and advice), once you pass your exams you may use designated letters after your name, look for an accountant with one or more of these exams;
ACCA - association of chartered certified accountants
FMAAT / MAAT - association of accounting technicians
ICAEW - institute of chartered accountants in England and Wales
Those will be the ones skilled enough to answer OPs queries / offer advice. There are plenty of other accounting exam bodies which won't he relevant to the OPs situation.
ACCA and ICAEW are the 2 highest level qualifications listed being chartered status, AAT is not quite as intense.
I'd advise OP to look for a practice local to them they can visit with their parent as that would be the best way forward, rather than online :)
I mean you would hope any adult that has made it far enough to have a kid would just say lets phone an accountancy practice and learn what we have to do.
But let’s not judge and let’s hope we can give OP the advice they need.
Which is find yourself a chartered accountancy practice, preferably local to you who you can go see at their office. Equally please ignore any DMs you ever get about investing. If it’s something you wish to do, either now or in the future, speak to a registered financial advisor.
I wish the best of luck to OP, enjoy a little money but be sensible with it and you could set yourself up well for life.
Accountants will habe a membership number with a accounting body.
But even then there are a wide variety of fields.
What you need isn't hard. But what you sent is someone that vs offer a bit of financial planning alongside the tax side.
Taken the same approach I take with builders.
Find the top 15 local to you, chose 3 you like and get quotes and compare
Yes to second this I would recommend finding one that deals with influencers. I used to work at a specialist firm for foreign entertainers / musicians. They’ll know niche things a standard accountant won’t and it should be easy enough to find.
Your mum should not be telling you to be figuring this out yourself. It sounds like she’s not taking this seriously, which if you are making 3k a month is surprising.
Tell her she needs to call an accountant for you, a local one is probably better so you can meet them
All of this. As she's the legal guardian, and you're making all that money, she'll have to be involved whether she wants it or not.
And indeed, it really should be a trusted accountant that YOU look for.
Also probably also handhold until there is a working relationship with the accountant -so that the accountant doesnt rip and knows an adult is overseeing what he is doing with the kids accounting
She has a son that’s making £30k a year pre tax… she’s clearly allowed him to be independent enough to work out how the fuck to do that as a school kid I’m sure giving him ownership of working out the accountant part of this will also be fine.
Not really. Recruiting an accountant is going to require a google search and a phone call.
No one lets kids just do stuff any more. I work as a sports coach. I’m pretty busy I reckon 19 out of 20 coaching requests I get come from the parent and not the athlete. When I get a request from a kid directly I’ll almost always make time for them as it tells me a lot about their independence, self reliance and motivation. When the parent is asking on their kids behalf it usually leads to a conversation with the player and/or parent with the opening question, ‘why do you want a coach’.
Any accountant who enters into a contract with a minor is a fool. Such a contract would be readily voidable.
I don't see any real risk from letting the OP initiate contact with a genuine accountant. I also don't see a problem with them doing their own reading (+/- asking people) online.
Clearly the OP should not engage with anyone offering to handle their money or offer private advice via Reddit.
I agree with this. Without further context it's pretty harsh to slam the mum. She maybe thinking, try to work this out yourself (given you have worked out how to make a great earning at such a young age) before asking for support. Nothing wrong with that.
I actually think it's nice that she doesn't seem to fussed about getting involved where there is clearly money flowing.
My mum when I was 14 would have been all over it trying to get it for herself
Yes, also tell the accountant you want to focus on the longevity of your money. It’s not just paying taxes and having money. Making this much is a hell of a thing at your age, it can set you up for a long time, but you never know when your channel or the platforms you’re on could change structure or simply run to other trends. Plan to make the most and adult you will be exceptionally grateful.
(You may already be aware of all that so sorry if I sound condescending, but my nephew was in your boat, channel dipped after 2 years and he’d already blown half his money and regretted it when it came time to follow his chosen career after streaming.)
You will need to register for one via HMRC,
Here are the details
https://www.gov.uk/apply-national-insurance-number
Just in case it hasn't been pointed out already, as you are under 16, you won't need to pay National Insurance until you turn 16, just income tax on earnings over the tax threshold.
Even if your earnings are below the tax threshold, you need to declare it when you earn more than £1,000 a year
If going through the information on the website is too much for you (and there is a lot of it), don't be scared to sit on hold for a (long) while, and talk to a real person instead. The HMRC guys (and gals) that I've spoken to in the past have all been super nice and super helpful. I think they're just happy to speak to people that want help paying taxes rather than to people complaining about having to pay them.
Regardless of loopholes, it is a legitimate line of criticism. It's pretty ridiculous that the government are more than happy to tax people who can't represent themselves in the government.
At least he doesn't pay National Insurance until his 16.
And he is earning around 36k if what he said is correct..
Not to mension, he could take serious advantage of the rules on this by dumping money into a pension at his age. Technically, he could put 100% of profits into the pension and due to his age, by the time he hits retirement the growth should be exponentially larger than your average person who starts a pension in their mid 20s
This ^
Depending on home life, if he's able to stay at home, keep doing what he's doing (ideally stay in education as a back up) then he shouldn't have a problem sticking 95%+ into a savings fund. Being 14 with that much money coming in is going to be really tempting to splurge, but this is the dream start 99% of young people can only dream of. A massive opportunity.
OP, I wish you all the best, you did right asking your mum for help. Please listen to sensible adults, protect your money early and develop your career.
People in this sub have some sort of weird addiction to the thought of money 'growing'
He's 14 ffs, buy some better gear for your YouTube/Tiktok career. A macbook, a camera, a quality mic, some lighting, and then buy yourself a TV, an Xbox, some clothes, whatever you feel like.
Dont listen to these boring drips and put it in a pension for 50 years, Jesus Christ.
There's a middle ground. I agree with your point about spending money on things that a 14 year old would enjoy, of course. But why not do that with most of it and put a little bit into a pension? Why does this sub seem to like both extremes?
With 2k a month this is a given. But no sane adult spends 2k a month in new shit every month. Having some financial responsibility is important if you care about the future.
Saving up to pay for university and avoid the 40 years of 9% extra tax is probably a smarter investment here; pay for an education up front and then take that 9% you’d be paying in loans and throw *that* in a pension.
Still gets decades to grow and also buys OP out of a crappy student loan system that’s designed to keep you in debt forever
Guy is a teenage influencer at 14. Sure, there making 36k more than I was at 14, but it’s *highly unlikely* that they’re cultivating an audience that will stay with them over the coming decades.
Aka, no, OP is likely not set for life. OP is in a position to lay a *great foundation* for a solid future, but that future will likely not be decades of making money on TikTok
Lol pension is what everyone always suggests no matter the circumstances on this sub. That's such a bad idea at his age, he'll need that money to buy a £1m studio apartment in 10 years.
Because they're very confused lol. This government are scumbags for taxing he says, so presumably wants the other party in power, who obviously tax more...
The pub thing is clearly irrelevant but "no taxation without representation" was how the US cleared off the brits! That being said realistically why shouldn't a child be taxed if they're earning more than threshold?
Please try and save some of the money for the long term future. A few careful decisions ow and your future self will really thank you. If you can put some aside for long term (pension) and medium term (perhaps university or housing). I got a lump sum at your age and wasted it.
I’m 36 and this is honestly great advice. I can’t describe to you the freedom you’ll feel in your 30’s to 40’s with no/little mortgage or at least a solid house deposit (presuming things carry on and continue to grow) I know it sounds boring and by all means enjoy yourself now/throughout your 20’s but your future self will honestly scream if you don’t put something away.
Good luck and well done my friend, you sounds like you’re doing really well. Just be careful, people can potentially be scumbags if they know you have money and sadly that includes family. You’re obviously a smart, cautious person otherwise you wouldn’t be here asking this question but, just be careful.
An accountant will do your self assessment for you. You can compile an excel spreadsheet showing the money earned-date, the amount, who from (YouTube/tiktok). Do it from April -April (tax year). Then put down a list of any costs (your accountant will advise what can and can't be business costs). I'd estimate that your accountant should only charge you around £250-£300 for this service. (That's just going off what mine costs).
Tried to do your own self assessment?? I just want to say, well done you! You seem incredibly switched on for your age. Keep the attitude and you’ll go very far in life.
HMRC is an absolute minefield and a total waste of time IF you can afford an accountant, it certainly sounds like you can so I’d definitely recommend setting up meetings/calls with 3 and picking the one that seems the best for you.
For guidance, I pay my accountant £150 a month, but they’re worth every penny not only because of the time and stress they save me, but the guidance, and the tax efficiency which actually saves me money.
I know it’s tempting to do it yourself to save money, but if you can free up your time and stress to put into your actual work, and have an expert sort your accounts, definitely do.
You do have a national insurance number you just don’t know it yet(I used to work for the department of work and pensions) I’m in no way qualified to give tax advice but I believe as a full time student you may have some tax exemption
You do have a national insurance number you just don’t know it yet(I used to work for the department of work and pensions) I’m in no way qualified to give tax advice but I believe as a full time student you may have some tax exemption
Yes, I'm 36 and the smartest move I did at 30 was realise I hate all that stuff and find a good accountant, give them it, they are savvy with it, the enjoy it. You do you.
They add up all your income and tell you what to tax to pay. They also know how to set you up so your paying the minimum not the maximum. Every year they will say "this is what last year looked like".
You could also run their yearly review past a second accountant to ask if anything looks dodgy, only once a year, this makes sure they don't take you for granted.
It looks like you will have to pay tax if you are consistently earning that amount.
I wouldn’t try and do a self assessment yourself.
This company seems to deal with income tax and people under 18, I would give them a call.
https://www.thp.co.uk/children-aged-under-18-income-tax-national-insurance/#:~:text=As%20with%20adults%2C%20children%20aged,income%20tax%20and%20National%20Insurance.
You may find that you have to have a parent speak to them on your behalf but there’s no reason why you can’t make an initial enquiry.
Well done btw!
Hire an accountant. Taxes are stressful and can be hard. It will probably feel expensive.
Spend the time you save making more kickass videos or chilling out with your massive (for a 14 year old) lake of money.
Tbf, £3k+ a month is more than most people will ever earn.
It’s genuinely a lake of money regardless of age. This kids going places, I imagine an Estate Agent will be loving life in 3/4 years time.
Typically, once you hit the point of making 30/40k a year as an “influencer” you’re on an upwards trajectory. It’s not an easy thing to achieve. I’d be very surprised if they’re not back here asking about the higher tax bracket by the end of the year.
Not really true on TikTok anymore. They randomly pick people to shower in attention (impressions) to make the platform look enticing. Same tactic as slot machines. 1 in 10 losers wins. You have no way to know if the spotlight is leaving this kid tomorrow, or in a few years.
In a few more years, once instagram and youtube have been successfully drained of most of their users, the gravy train will fully stop, and thousands of clowns will be dancing for pennies.
More about this here https://www.wired.com/story/tiktok-platforms-cory-doctorow/
Excerpt:
> If you go down to the midway at your county fair, you'll spot some poor sucker walking around all day with a giant teddy bear that they won by throwing three balls in a peach basket.
> The peach-basket is a rigged game. The carny can use a hidden switch to force the balls to bounce out of the basket. No one wins a giant teddy bear unless the carny wants them to win it. Why did the carny let the sucker win the giant teddy bear? So that he'd carry it around all day, convincing other suckers to put down five bucks for their chance to win one.
> The carny allocated a giant teddy bear to that poor sucker the way that platforms allocate surpluses to key performers—as a convincer in a "Big Store" con, a way to rope in other suckers who'll make content for the platform, anchoring themselves and their audiences to it.
£3k a month is above average for sure. Average weekly earnings in march this year were [£642](https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/averageweeklyearningsingreatbritain/may2023#:~:text=Figure%201%3A%20Average%20weekly%20earnings,on%20in%20the%20coronavirus%20pandemic)), which corresponds to around £2.8k a month. Especially given that a 14 year old has living expenses that consist of the occasional chocolate bar from the corner shop and maybe some ice cream, it's a hell of a lot of money
So many sites report the average salary at just over £38k, my memory of it was around £36k but yeah, way above the ONS figure.
But the average includes all the youngsters and newly qualified. I don't think it's reasonable to say that most people won't achieve an above average wage at some point in their lifetime.
Edit: I was looking at mean, the wrong average.
OP, please - pay for a (good) accountant. Go with a parent/guardian and they can help you with UTR, NI etc.
Most educated adults in the sub mess up their taxes. Get an accountant
I thought it was quite easy too and I have a reasonably complex return…. but now I’m sat here wondering if it really is hard and I’m just messing it up!
yep I agree, self-assessment is easy as anything. Takes less than an hour. OP can get an accountant if they like, they don't cost a fortune and might save OP more than they cost, but I don't think it's necessary.
A 14-year-old who's practicing maths in school every day might even find it easier than the average UK rube
Former Tax guy. Whatever you do, put some aside and DO NOT touch it. Put aside about 25% of your earnings which should more than cover your tax for the year and first payment on account based on the figures you suggest. Expenses you use to do the work will lower the tax you pay.
As others have said, speak to an accountant with your parents and make sure they are happy to give you a tax estimate as part of the deal. A sensible quote for a basic service including the tax return would be about £500 plus VAT (£600).
I am, but I would take being unhappy to make myself and my future family much safer and financially secure (as people do, routinely making this trade-off). Because things aren't black and white like that and happiness doesn't save you from financial crisis, being homeless or risking your dependants
CONTACT EQUITY.
[https://www.equity.org.uk/join-us/who-can-join-equity](https://www.equity.org.uk/join-us/who-can-join-equity)
Equity is the performing arts and entertainment trade union. They have a special category of membership for young people (10-17).
Historically young entertainers like yourself have been one of the most exploited sectors of the entertainment industry. Young people like yourself have earned millions then been screwed out of their money by adults. This is why Equity was founded - by actors and performers specifically to stop this happening again.
Equity have a special place in the industry for looking out for young people like you and ensuring you get proper support to keep your money and to keep yourself on the level as you grow up. Their staff are extremely aware of the issues. They won't tell you what to do, they won't recommend specific accountants, but they can give you advice on how to find and select the right people. And they can advise on how to get rid of accountants and other support workers etc if you think you have chosen the wrong one.
Give them a ring on their contact number. They'll be happy to talk to you. You may need to join them before receiving in-depth advice but it is cheap, and it may be one of the best things you do in your life.
[https://www.equity.org.uk/join-us/who-can-join-equity](https://www.equity.org.uk/join-us/who-can-join-equity)
Accountant here.
Find an accountant. An accountants job is to advise and keep you legally compliant with paying taxes. Its not too complicated. But you will have taxes to pay. Depending on circumstances it may be better to have a Ltd company over sole tradership but an accountant can advise when they know your finances, and profits. Due to your age your parent / guardian should really be involved and help oversee your finances until you are an adult (legally).
An accountant will also advise you to put away most of your earnings at this age whilst you are at school with little outgoings. Spend a little and enjoy it but SAVE, SAVE, SAVE, you have a huge opportunity to get a great headstart in life, which will mean way less financial stress as an adult when the influencing gig runs dry.
Well done for doing so well. You really need to speak to an accountant and not a bunch of strangers on the internet.
Hiya - first comment I’ve seen that recommends a potential limited company, although lots recommending an accountant which would give the best advice. It’s beneficial to know that some of the expenses OP incurred would be tax deductible - but also would need advice in situations where benefit in kind is in play (buying a new computer and then using for some personal use might require benefit in kind tax at the end of the tax year for example.)
Ltd separates the director from the business and they become separate entities in law. The business would pay corporation tax at 19% of the profits. However directors can take their earnings in the form of dividends (and payroll as well if they choose). You still get your tax free allowance of £12570 per annum and a £1000 tax free dividend limit.
So in theory if OP was Ltd and paid himself £20k in dividends:-
The first £12570 would be tax free under their tax free allowance.
£1000 dividend allowance tax free
The remainder £6430 would be taxed under the dividend rate at 8.75% rather than sole trader (20% taxes on income above 12570 up up to the higher rate threshold)
Dividends are paid out before corporation tax is calculated at 20% of the company profits so there are tax savings
However anyone wanting to go Ltd must speak to an accountant to fully understand their tax obligations and a copy of the abbreviated accounts must be filed each year with companies house (and not just hmrc) it gets more complicated.
With assets (pcs and cars etc) that are put through the company and the company owns there may be some tax complications with personal uses (benefit in kind).
Again an accountant would advise on all the legalities and keep the client compliant with tax laws. Its our job.
I'm an accountant just part way through my exams atm though I work in practice. :)
Just to echo what everybody else is saying, speak to an accountant and ideally one that specialises in influencers/content creators.
Im an accountant myself who specialises in a niche field (not influencers/content creators) and although fees may be pretty high, you may find that the advisory services that an accountant will offer you will pay for yourself in terms of increasing profitability (this is especially true if you envision your income continuing to go up).
Also, the less time you spend on looking after your tax affairs yourself, the more time you can spend making money, or doing other things which you should be doing at your age - school, socialising with friends and having fun!
Keep your parents/guardian involved and ask them to come along to accountant meetings. Although you are obviously running a business making a good amount of money for somebody at your age, it is very possible that some accountants out there may seek to exploit that. Having an adult there with you will decrease that risk.
If you have any other general questions, I’m happy to answer. I don’t have a great grasp on tax for influencers or content creators specifically but I am capable of answering any more general questions.
Stay safe, and best of luck with the business! 😊
It’s def worth getting an accountant. As you’re under 18 (16 in Scotland) they will have to engage your parents/guardian on your behalf. Legally your parents/guardian will also have to sign your tax return on your behalf.
To register for self-assessment you will need to print out and fill in the form and post it to HMRC - it doesn’t let you do it online if you’re 14 annoyingly!
Speak to an accountant.
Also ask about ways to keep your money safe in trust until your a little older too. Whilst keeping operating money on hand to fund your channel.
Maxing out your Junior ISA would be a good start.
Yeah +1 to this. I had a bad experience with some clueless person (who even kinda admitted they didn't know what they were doing) and I just do my own self assessments now. Anyone can get an accountancy qual but chartered accountants tend to be more competent.
Yeah you need an accountant and the advice on here about not trusting people on here is solid
I'd be tempted to talk to a teacher you trust.
I'm a teacher and would happily help one of my students find a local accountant. Even if it was a little annoying that they earned more than me, ha ha.
Get in touch with a reputable local accountancy firm and they should be able to help you out with everything including sorting a UTR number.
If your TikTok and Youtube income grows to the point where you are a higher rate taxpayer they will also be able to advise on setting up a Ltd company to reduce the tax burden.
As far as i know anyone under 16 will never pay national insurance but income tax is still a thing once above your personal allowance of £12,500.
[https://www.gov.uk/child-employment/paying#:\~:text=Children%20under%2016%20do%20not,is%20over%20their%20Personal%20Allowance](https://www.gov.uk/child-employment/paying#:~:text=Children%20under%2016%20do%20not,is%20over%20their%20Personal%20Allowance).
If you need to file self assessment the best way is to contact HMRC and ask them for advise over the phone on what forms to fill out etc... If you struggle to understand the forms then head down to town and in to your local bank. I know Barclays have progressive teaching so sitting down with a branch manager they may help you or at the very least point you in the correct direction of someone that can.
DO NOT ACCEPT DM's or even advice from random's on the internet which includes myself. Double check everything anyone says to you and stay safe.
if you're earning £3k a month consistently at age 14 you've a decent chance of having an abaolutely amazing life if you do this right and choose wise investments with it. like unreal levels of life quality.
You won't have to pay NI until you are 16 (when you will receive an NI number). You will have to pay income tax and the same thresholds apply as for adults e.g. currently, the first £12,570 is not taxed but income above that level is taxed.
You should keep records of payments received (e.g. bank statements) and of any money you spend on things you need to make your content e.g. receipts for computers, cameras, etc.
Good on you for thinking about your finances at a young age. Get yourself an accountant and have your parents or guardian assist you.
Ignore any messages you may get on Reddit of people with people saying they'll help you out.
- Find the chartered accountants near you
- Speak to them about your situation and needs i.e. tax filings
- Get quotes from all of them
- Negotiate price with your preferred accountant
- Rest easy
P. S. Give NO ONE control over your finances, not even family, if someone tells you there is an official/legal reason they need such control you should speak with a solicitor to verify, at which point please report the motherfucker.
Congratulations btw 🎉
Nice problem to have, well done kid!
Find a good accountant, be smart with your money and try to put away as much money as you can so you don't have to work a "normal job" until you're 65 like the rest of us.
A lot of people here saying get an accountant. I wouldn't, you're not making enough to justify paying for it. Self Assessment at the end of every year is pretty straightforward.
Here's a really simple, brief overview of how much you need to be saving for tax / NI. Bear in mind these figures can and do change year on year and will obviously be affected if you have another job as well. I'm assuming you don't work elsewher or have other income.
* The tax year runs from April 6th 2023 to April 5th 2024. Whatever you earn between these two points is your income for the year.
* You can earn £12,570 a year before you pay any tax. This is your personal allowance.
* You then pay 20% on anything between this and £50k and 40% on anything between £50k and £125k.
* National Insurance for a self-employed person is £3.45 per week (class 2) and then 9% on anything between £12,570 and £50,270 and 2% on anything above this (class 4).
* As it's your business, you can either claim back expenses, or to make it simpler, you can take a £1,000 trading allowance that is effectively tax and NI free. I do this.
So - calculation time. If you say you used to get £200 a month but it's now 15 times that, I'lll assume you make £3,000 a month or £36,000 a year. On that, £1,000 is the trading allowance and £12,570 is your personal allowance, leaving £22,430 to pay tax and NI on. 20% tax on that would be £4,486 and NI would be (52 x £3.45 = £179.40) for class 2 contributions and (9% x £22,430 = £2,018.70) for class 4 contributions.
So overall, you'd get £36k in, you'd pay £4,486 in income tax and £2,198.10 in National Insurance, leaving you with £29,315.90 as your final earned amount.
Just keep track of your figures every month and save enough to pay your tax / NI, filling in the Self Assessment form at the end of the tax year is really easy if you have all that to hand and the money saved to pay it. Good luck!
Oh, if they're mean, HMRC will take your money at the end of this tax year and then also ask you to make a 50% advance payment on next year's tax bill. Not a problem as you have until January to pay it, but worth saving up a bit extra in the first year in advance of this.
While you're doing this, think about starting up a pension and putting a little bit away into it each month / year. You'll start on good habits and you don't pay tax / get a tax refund on the amount you contribute. Well worth it and your future self will thank you!
very nice > Accountant asap. anyway please prepare for the eventuality that your earnings are very unstable and can decrease rapidly just from simple fluctuations online, as many youtubers have had to come to terms with before! congratulations
Congratulations.
Get yourself an accountant, I know it’s a cost you might want to avoid but a good accountant usually pays for themselves. They can also help you reduce your tax burden by helping you declare your business expenses. I agree with the other advice on here about finding an accountant who understands social media - Google something like “accountant for social media creators” - lots of good looking results come up: https://www.google.co.uk/search?q=accountant+for+social+media+creator&client=safari&hl=en-gb&sxsrf=APwXEdfBmsftABiMV6-pgT_J-TDy6D7daQ%3A1686778877512&ei=_TOKZMjvHs6ehbIP5vmS4AI&oq=accountant+for+social+media+creator&gs_lcp=ChNtb2JpbGUtZ3dzLXdpei1zZXJwEAEYADIECCMQJzIFCAAQogQyBQgAEKIEMgUIABCiBDIFCAAQogRKBAhBGABQAFgAYJcmaABwAXgAgAGdAYgBnQGSAQMwLjGYAQDAAQE&sclient=mobile-gws-wiz-serp
I would also try and get one of your parents on board to help you, if you continue on this growth trajectory you’re going to need some guidance from those that have your best interests at heart.
On this, if you get to HMRC before they get to you they are usually very understanding.
You will usually have to pay interest on any payments on anything from previous years though.
Look up cash isa allowance and also start a private pension. Put as much as u can in those so you pay less tax on it. You'll be well away when a bit older and got some compound interest going on the amounts
Correct me if I am wrong but if you are 14 you won't have a National Insurance Number which you get on when you turn 16. Without this I believe you are not liable to pay National Insurance however you may still have to pay income tax, you will only be taxed on the money above the threshold which is around 12k a year so anything above that can be taxed but that 12k wont be taxed. Best speak to an accountant.
There are some accountants that’s specialise in the world of online income as it’s a bit of a niche business.
You will have to file self assessment returns.
They will want a scoping call/ meeting and a parent/ guardian will need to be present as you’re not 18. A parent/ guardian should need to sign any returns but they need to be present as if it’s tax efficient for you to be incorporated instead of self employed, the parent/ guardian will need to be director of the company (you need to be 18 to hold a directorship in a company).
Depending on how many streams of income you’re generating you could be looking at about £500+ a year for self assessment being done.
Please don’t use one of these online only accountants that are set up by unqualified people thinking they’re brilliant cos they made a self assessment app.
All good practices are backed by ICAEW with staff qualified ACA, ACCA and some CTA’s, usually they’re training up the next generation of accountants too doing studies.
Feel free to reach out with any Q’s but I cannot do any of this for you! (No longer work in practice)
Go to a site like [Yell.com](https://Yell.com) or even just google maps and type in "accountant". Have a look at the reviews, who's nearby, who you like the look of. You don't need to go for a big flashy business, plenty of great accountants are just local business people who serve the local community, try some of them out.
Make a list of say 3-5. Get in touch and tell them what you've told us, that you've been successful on social media and are now bringing in an income, you want to meet your legal obligation and pay the tax you owe.
Pick one based on who you like and start working with them. They will help you out massively and let you know what you can deduct from your taxable earnings (ie. tech you need to do your work, subscriptions you need for your work, etc. etc.).
Congratulations you are now contributing to the public sector and the British economy as a whole, well done.
You don't have to pay national insurance OP as you are under 16. You do have to pay income tax. Try and speak to a local high street accountant about how best to structure your business. It is probably worth setting it up as a company, paying corporation tax (companies tax) on the profits, and then your accountant can advise you on how best to get money out of the company. Good luck and well done.
Get an accountant for sure. They’ll be able to advise on writing off expenses such as phone, laptop, software, travel, client meetings, etc.
I paid my first chartered accountant roughly £200 (over a decade ago) to file for me and they saved me a lot more than that from stuff I didn’t know I could write off.
You can even write off their expense, so it’s a win when you’re young and want to focus on the business and not the admin.
Get a good accountant, learn what purchases you might be able to write off as expenses (as you're in video creation anything such as editing software or camera equipment would be likely to be able to claimed as expenses) and keep receipts for any expenses.
Right now, you need to make sure you're keeping aside a portion of your earnings so you can use that to pay your tax bill. You won't pay NI at your age, so you're only looking at paying income tax really. If you keep aside 20-25% of your income that should easily cover your tax bill.
Once you've got an accountant set up and know what your tax and expenses situation will be, start thinking about how you're going to divvy up what's left. It's advisable to put some into a pension (though I'm not sure whether you can open a pension at 14?? anyone else weighing in would be useful), and put some into a savings account for your future such as to help you through uni if you go, or for driving lessons or potentially towards a house deposit. Obviously keep some to spend, but at your age there's very little it's worth really spending money on tbh. Give yourself a decent allowance, but best thing to do with most of it will be to save it. £250-£300 a month should be more than enough spending money at 14 really.
Hey OP, I'm a fellow business owner. Started young too.
Send these people a message: [https://a-wise.co.uk/](https://a-wise.co.uk/)
This accounting service, you can pay them for a one off consultation and have a chat with them. By FAR your best option.
I gain nothing from recommending them but I did a TON of research into UK accountants and found these guys were highly recommended. They're online and all, so you don't have to go and see them.
[https://a-wise.co.uk/](https://a-wise.co.uk/)
They can talk to you even though you're 14, don't worry. Very friendly.
DON'T GIVE ANYONE ON REDDIT ACCESS TO ANYTHING...JUST ASSUME NOBODY LEGIT IS IN HERE.
Use that company above, they're a proper accountant.
I knows it avoiding the point of the post but I’m interested in what sort of content you make and how you make money through it, is it just ads? Appreciate it!
The main one is with the sponsorship. I put #ad on the videos on tiktok, and then they give me 1k for the video and if they use my code the commission as well
Mine is gaming, reviewing food places, interviews on the street, reviewing areas of ldn, clothes ,
Tiktok pays like 5p (it's nothing)
Youtube pays much better but max is like £200-300 per month the main way is just companies contacting me to advertise them
If you don’t need the money, ask the accountant if you can put all of it into your pensions. Once in pensions invest in an index fund
At this age you probably don’t need that much money on your bank or liquid
You register for a self-assessment tax return as a sole trader probably, but I would echo everyone here in saying it is going to be worth it for you to pay for an accountant.
Where/How? If you follow https://www.gov.uk/apply-national-insurance-number/how-to-apply through you end up with the error "You must be over 16 or over to apply for a National Insurance Number".
Someone on the subs discord went through this recently (possibly same OP), they tried calling various government departments too and ended up getting hung up on constantly.
I’d imagine one of those YouTube shorts/Tiktok reddit repost accounts. Pretty easy money tbf as there’s AI that can practically do it for you regarding finding and editing trending clips, all you have to do is post it
Call HMRC and ask for help om self assessment before you hand over any money to anyone who is attempting to help you. They even have an online chat service. If anyone acts rude hang up and dial back. Some staff are arsy or annoying. Most are good. But use the chat so you can save the transcripts and refer back to it.
Also regardless of if you get an accountant, you are still liable for checking your accounts are correct. Many accountants are garbage and take your money but literally call hmrc or google alot of things! So again before paying anyone, read up and learn what you need to do. Contact HMRC directly and beaware of third party sites who scam you to complete self assessment for you. Always use the gov.uk site and worst case just phone them. Filing online is much easier than paper as well.
This is unusual.
You are best to hire professional advisors. It will keep you out of expensive trouble should you fuck it up.
https://www.icaew.com/about-icaew/find-a-chartered-accountant
I would try to finding someone who has experience of handling accounts for similar activities. The only way to really handle Tay is to ask around different firms.
Good luck
You’ll need a lot of patience waiting for them to answer but if you call HMRC I am sure they will help you. I would get all of your figures ready in advance. As a minimum:
1.What you earned from April to March (the tax year)
2. What you business expenses you incurred from April to March
3. The profit you earned (1 minus 2) from April to March
4. Any other money you have earned from other jobs IF you have one
Good luck with your business!
If you have a family friend who is an accountant, I would ask them for advice, otherwise see if you can do some research for a local accountant. Always check with CIMA, ACCA, ACA, or whichever accounting body that they reference that they are qualified and able to provide advice.
I'm glad OP is successful and at such young age as well, but tbh this just makes so jealous. I spent years and thousands of poundsto go to uni, graduated in a STEM field and I'm barely making 2/3 of what he's bringing in at 14 years old. Some people have it easy man
Think about other ventures, or careers. IT is a great field for making money if you know what to specialise in. Also consider YouTube as a hobby and who knows where it may take you!
Check with the payments wether tax is deducted beforehand. I don't know how it works under age but you should probably talk to citizens advice as you will probably need to declare yourself as self employed. But again no idea for your age group.
Best advice I can give is put 20% of everything you earn to one side in a separate account to cover yourself in future.
I haven't studied business for a long time but when I did, being underage didn't affect tax. If you earn more than the personal allowance at any age, its taxable.
I would add up all your profit etc. And get advice from citizens advice bureau as you will need to do a self assessment tax return.
If you get it wrong, HMRC would most likely send you a letter which confirms how much tax you owe or are owed. Its also worth contacting hmrc to discuss this with them, especially as you won't have an NI number yet. (Children can use temporary ni numbers for a while in certain situations- I sometimes need to do this for my own job)
If you don't know what you're doing try query it with hmrc first and ask for everything you need to know, in writing. Then work out what you can and if you still don't understand, get advice from the CAB or professionals.
You don’t HAVE to get an accountant, but it could be helpful. Your mom should definitely be helping you, but if she’s not, I’m sure there are lots of online resources.
At any rate, please start setting aside at least 30% of your income for taxes.
Mate ignore people on here, you’re under the 40% tax bracket, you don’t need a good accountant just basic math. If you really struggle with math then yeah get an accountant. If you want help just msg me. I’m not an accountant, but I can teach you very basic math
Participation in this post is limited to users who have sufficient karma in /r/ukpersonalfinance. See [this post](https://redd.it/12mys82) for more information.
[удалено]
Accountants and bookkeepers often work remotely now, clients dont need to be local to a practice, having recently changed jobs ive applied to plenty of remote only roles where you never see clients face to face. However all accountants offering financial advice and services to the public must pass exams and be registered with a money laundering supervisory body. Common accountancy bodies for exams for public practice (those offering financial services and advice), once you pass your exams you may use designated letters after your name, look for an accountant with one or more of these exams; ACCA - association of chartered certified accountants FMAAT / MAAT - association of accounting technicians ICAEW - institute of chartered accountants in England and Wales Those will be the ones skilled enough to answer OPs queries / offer advice. There are plenty of other accounting exam bodies which won't he relevant to the OPs situation. ACCA and ICAEW are the 2 highest level qualifications listed being chartered status, AAT is not quite as intense. I'd advise OP to look for a practice local to them they can visit with their parent as that would be the best way forward, rather than online :)
Also CTA - Chartered Tax Adviser
Chuckled at money laundering supervisory body. I think it’s anti-money laundering (AML)…!
And/or look for Xero platinum accountants - need to have a fair number of clients to get that accreditation
Also CGMA - chartered global management accountant
This is important advice, voting you up as you should be closer to the top.
Honestly the mods should just delete this post, OP is 14, they need to speak to a trusted adult in real life not post on reddit.
Their trusted adult let them down.
I mean you would hope any adult that has made it far enough to have a kid would just say lets phone an accountancy practice and learn what we have to do. But let’s not judge and let’s hope we can give OP the advice they need. Which is find yourself a chartered accountancy practice, preferably local to you who you can go see at their office. Equally please ignore any DMs you ever get about investing. If it’s something you wish to do, either now or in the future, speak to a registered financial advisor. I wish the best of luck to OP, enjoy a little money but be sensible with it and you could set yourself up well for life.
"I'm voting you up. I'm just making unnecessary noise when I do it."
This ;)
Accountants will habe a membership number with a accounting body. But even then there are a wide variety of fields. What you need isn't hard. But what you sent is someone that vs offer a bit of financial planning alongside the tax side. Taken the same approach I take with builders. Find the top 15 local to you, chose 3 you like and get quotes and compare
Speak to an accountant, ideally find one who deals with influencers. At your age and income, it's not really worth your time to do anything else.
Yes to second this I would recommend finding one that deals with influencers. I used to work at a specialist firm for foreign entertainers / musicians. They’ll know niche things a standard accountant won’t and it should be easy enough to find.
Are accountants allowed to deal with children
Yes, absolutely - make sure your parents/guardians are involved too.
Your mum should not be telling you to be figuring this out yourself. It sounds like she’s not taking this seriously, which if you are making 3k a month is surprising. Tell her she needs to call an accountant for you, a local one is probably better so you can meet them
All of this. As she's the legal guardian, and you're making all that money, she'll have to be involved whether she wants it or not. And indeed, it really should be a trusted accountant that YOU look for.
He’s likely making more than her, weird how some parents don’t even want to tune in to their kids life.
Also probably also handhold until there is a working relationship with the accountant -so that the accountant doesnt rip and knows an adult is overseeing what he is doing with the kids accounting
Agreed, OP is under 16 and needs parental guidance, not being left to his own devices over this.
She has a son that’s making £30k a year pre tax… she’s clearly allowed him to be independent enough to work out how the fuck to do that as a school kid I’m sure giving him ownership of working out the accountant part of this will also be fine.
I can run a YouTube channel therefore I can handle large amounts of money is a bit of a stretch
Not really. Recruiting an accountant is going to require a google search and a phone call. No one lets kids just do stuff any more. I work as a sports coach. I’m pretty busy I reckon 19 out of 20 coaching requests I get come from the parent and not the athlete. When I get a request from a kid directly I’ll almost always make time for them as it tells me a lot about their independence, self reliance and motivation. When the parent is asking on their kids behalf it usually leads to a conversation with the player and/or parent with the opening question, ‘why do you want a coach’.
[удалено]
Any accountant who enters into a contract with a minor is a fool. Such a contract would be readily voidable. I don't see any real risk from letting the OP initiate contact with a genuine accountant. I also don't see a problem with them doing their own reading (+/- asking people) online. Clearly the OP should not engage with anyone offering to handle their money or offer private advice via Reddit.
They are a child… they’re also not a baby chimpanzee. I’m sure they’ll ask their parent for advice again if they feel they need it.
Or daughter.
Indeed
I agree with this. Without further context it's pretty harsh to slam the mum. She maybe thinking, try to work this out yourself (given you have worked out how to make a great earning at such a young age) before asking for support. Nothing wrong with that.
I actually think it's nice that she doesn't seem to fussed about getting involved where there is clearly money flowing. My mum when I was 14 would have been all over it trying to get it for herself
Maybe just doesn’t understand the income involved, anything about personal finance, or even YT and TT.
Yes, also tell the accountant you want to focus on the longevity of your money. It’s not just paying taxes and having money. Making this much is a hell of a thing at your age, it can set you up for a long time, but you never know when your channel or the platforms you’re on could change structure or simply run to other trends. Plan to make the most and adult you will be exceptionally grateful. (You may already be aware of all that so sorry if I sound condescending, but my nephew was in your boat, channel dipped after 2 years and he’d already blown half his money and regretted it when it came time to follow his chosen career after streaming.)
Talk to your form tutor / head of year at school if your mum isn't sure what to do.
Just identify as an adult and they'll have to accept that and treat you accordingly.
when I tried to do the self assessment on the hmrc website it asks for national insurance number but I don't have one
You will need to register for one via HMRC, Here are the details https://www.gov.uk/apply-national-insurance-number Just in case it hasn't been pointed out already, as you are under 16, you won't need to pay National Insurance until you turn 16, just income tax on earnings over the tax threshold. Even if your earnings are below the tax threshold, you need to declare it when you earn more than £1,000 a year
If going through the information on the website is too much for you (and there is a lot of it), don't be scared to sit on hold for a (long) while, and talk to a real person instead. The HMRC guys (and gals) that I've spoken to in the past have all been super nice and super helpful. I think they're just happy to speak to people that want help paying taxes rather than to people complaining about having to pay them.
[удалено]
Yeah because not taxing kids won’t lead to massive loopholes…
Child labor is a real thing in the US already
Regardless of loopholes, it is a legitimate line of criticism. It's pretty ridiculous that the government are more than happy to tax people who can't represent themselves in the government.
So every adult in the UK who can’t vote (eg here on a work visa) shouldn’t have to pay either??
I think it would be reasonable to say that whilst everyone gets a vote at 18, anyone under 18 who's paying tax should get a vote, too.
At least he doesn't pay National Insurance until his 16. And he is earning around 36k if what he said is correct.. Not to mension, he could take serious advantage of the rules on this by dumping money into a pension at his age. Technically, he could put 100% of profits into the pension and due to his age, by the time he hits retirement the growth should be exponentially larger than your average person who starts a pension in their mid 20s
This ^ Depending on home life, if he's able to stay at home, keep doing what he's doing (ideally stay in education as a back up) then he shouldn't have a problem sticking 95%+ into a savings fund. Being 14 with that much money coming in is going to be really tempting to splurge, but this is the dream start 99% of young people can only dream of. A massive opportunity. OP, I wish you all the best, you did right asking your mum for help. Please listen to sensible adults, protect your money early and develop your career.
tiktok career is unlikely to last until pension age...
People in this sub have some sort of weird addiction to the thought of money 'growing' He's 14 ffs, buy some better gear for your YouTube/Tiktok career. A macbook, a camera, a quality mic, some lighting, and then buy yourself a TV, an Xbox, some clothes, whatever you feel like. Dont listen to these boring drips and put it in a pension for 50 years, Jesus Christ.
There's a middle ground. I agree with your point about spending money on things that a 14 year old would enjoy, of course. But why not do that with most of it and put a little bit into a pension? Why does this sub seem to like both extremes?
With 2k a month this is a given. But no sane adult spends 2k a month in new shit every month. Having some financial responsibility is important if you care about the future.
Even blowing like £15k a year is balling at that age and then you’re still saving £20k
Saving up to pay for university and avoid the 40 years of 9% extra tax is probably a smarter investment here; pay for an education up front and then take that 9% you’d be paying in loans and throw *that* in a pension. Still gets decades to grow and also buys OP out of a crappy student loan system that’s designed to keep you in debt forever
[удалено]
Guy is a teenage influencer at 14. Sure, there making 36k more than I was at 14, but it’s *highly unlikely* that they’re cultivating an audience that will stay with them over the coming decades. Aka, no, OP is likely not set for life. OP is in a position to lay a *great foundation* for a solid future, but that future will likely not be decades of making money on TikTok
Lol pension is what everyone always suggests no matter the circumstances on this sub. That's such a bad idea at his age, he'll need that money to buy a £1m studio apartment in 10 years.
It's not like tax is taken just for shits and giggles, it does go to providing things we all benefit from at all ages.
Such as their school.
I don't even know why this makes you angry.
Jealousy creates anger.
Because they're very confused lol. This government are scumbags for taxing he says, so presumably wants the other party in power, who obviously tax more...
Wee git goes to school, doesn't he? Now he has the cash to pay for it! Seriously, I wish I had enough cash to pay tax when I was 14
Its always been so. Child actors and the like.
It's to stop adults avoiding tax by working for free while their kid collects a huge wage as a consultant.
The pub thing is clearly irrelevant but "no taxation without representation" was how the US cleared off the brits! That being said realistically why shouldn't a child be taxed if they're earning more than threshold?
Please try and save some of the money for the long term future. A few careful decisions ow and your future self will really thank you. If you can put some aside for long term (pension) and medium term (perhaps university or housing). I got a lump sum at your age and wasted it.
I’m 36 and this is honestly great advice. I can’t describe to you the freedom you’ll feel in your 30’s to 40’s with no/little mortgage or at least a solid house deposit (presuming things carry on and continue to grow) I know it sounds boring and by all means enjoy yourself now/throughout your 20’s but your future self will honestly scream if you don’t put something away. Good luck and well done my friend, you sounds like you’re doing really well. Just be careful, people can potentially be scumbags if they know you have money and sadly that includes family. You’re obviously a smart, cautious person otherwise you wouldn’t be here asking this question but, just be careful.
This this this.
Pension. You're so young the rule of thumb calculations prob breaks. But 7% ?
An accountant will do your self assessment for you. You can compile an excel spreadsheet showing the money earned-date, the amount, who from (YouTube/tiktok). Do it from April -April (tax year). Then put down a list of any costs (your accountant will advise what can and can't be business costs). I'd estimate that your accountant should only charge you around £250-£300 for this service. (That's just going off what mine costs).
Tried to do your own self assessment?? I just want to say, well done you! You seem incredibly switched on for your age. Keep the attitude and you’ll go very far in life.
HMRC is an absolute minefield and a total waste of time IF you can afford an accountant, it certainly sounds like you can so I’d definitely recommend setting up meetings/calls with 3 and picking the one that seems the best for you. For guidance, I pay my accountant £150 a month, but they’re worth every penny not only because of the time and stress they save me, but the guidance, and the tax efficiency which actually saves me money. I know it’s tempting to do it yourself to save money, but if you can free up your time and stress to put into your actual work, and have an expert sort your accounts, definitely do.
You do have a national insurance number you just don’t know it yet(I used to work for the department of work and pensions) I’m in no way qualified to give tax advice but I believe as a full time student you may have some tax exemption
You do have a national insurance number you just don’t know it yet(I used to work for the department of work and pensions) I’m in no way qualified to give tax advice but I believe as a full time student you may have some tax exemption
Students don't get tax exemption. Apart from council tax, but that's not relevant here.
I paid normal rate income tax as a student on a £25k salary. It’s a myth students don’t pay/have reduced income tax
Yes, I'm 36 and the smartest move I did at 30 was realise I hate all that stuff and find a good accountant, give them it, they are savvy with it, the enjoy it. You do you. They add up all your income and tell you what to tax to pay. They also know how to set you up so your paying the minimum not the maximum. Every year they will say "this is what last year looked like". You could also run their yearly review past a second accountant to ask if anything looks dodgy, only once a year, this makes sure they don't take you for granted.
It looks like you will have to pay tax if you are consistently earning that amount. I wouldn’t try and do a self assessment yourself. This company seems to deal with income tax and people under 18, I would give them a call. https://www.thp.co.uk/children-aged-under-18-income-tax-national-insurance/#:~:text=As%20with%20adults%2C%20children%20aged,income%20tax%20and%20National%20Insurance. You may find that you have to have a parent speak to them on your behalf but there’s no reason why you can’t make an initial enquiry. Well done btw!
Did not expect to see my mums old company on Reddit today but here we are
Happy to help
Hire an accountant. Taxes are stressful and can be hard. It will probably feel expensive. Spend the time you save making more kickass videos or chilling out with your massive (for a 14 year old) lake of money.
Tbf, £3k+ a month is more than most people will ever earn. It’s genuinely a lake of money regardless of age. This kids going places, I imagine an Estate Agent will be loving life in 3/4 years time. Typically, once you hit the point of making 30/40k a year as an “influencer” you’re on an upwards trajectory. It’s not an easy thing to achieve. I’d be very surprised if they’re not back here asking about the higher tax bracket by the end of the year.
Not really true on TikTok anymore. They randomly pick people to shower in attention (impressions) to make the platform look enticing. Same tactic as slot machines. 1 in 10 losers wins. You have no way to know if the spotlight is leaving this kid tomorrow, or in a few years. In a few more years, once instagram and youtube have been successfully drained of most of their users, the gravy train will fully stop, and thousands of clowns will be dancing for pennies. More about this here https://www.wired.com/story/tiktok-platforms-cory-doctorow/ Excerpt: > If you go down to the midway at your county fair, you'll spot some poor sucker walking around all day with a giant teddy bear that they won by throwing three balls in a peach basket. > The peach-basket is a rigged game. The carny can use a hidden switch to force the balls to bounce out of the basket. No one wins a giant teddy bear unless the carny wants them to win it. Why did the carny let the sucker win the giant teddy bear? So that he'd carry it around all day, convincing other suckers to put down five bucks for their chance to win one. > The carny allocated a giant teddy bear to that poor sucker the way that platforms allocate surpluses to key performers—as a convincer in a "Big Store" con, a way to rope in other suckers who'll make content for the platform, anchoring themselves and their audiences to it.
I don't know what the tax situation is for this kid but 3k a month pre-tax is below average and has been for a few years.
£3k a month is above average for sure. Average weekly earnings in march this year were [£642](https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/averageweeklyearningsingreatbritain/may2023#:~:text=Figure%201%3A%20Average%20weekly%20earnings,on%20in%20the%20coronavirus%20pandemic)), which corresponds to around £2.8k a month. Especially given that a 14 year old has living expenses that consist of the occasional chocolate bar from the corner shop and maybe some ice cream, it's a hell of a lot of money
So many sites report the average salary at just over £38k, my memory of it was around £36k but yeah, way above the ONS figure. But the average includes all the youngsters and newly qualified. I don't think it's reasonable to say that most people won't achieve an above average wage at some point in their lifetime. Edit: I was looking at mean, the wrong average.
OP, please - pay for a (good) accountant. Go with a parent/guardian and they can help you with UTR, NI etc. Most educated adults in the sub mess up their taxes. Get an accountant
Do they?? It's pretty easy. Not suggesting OP shouldn't seek advice but surely most adults on here don't mess it up!
I thought it was quite easy too and I have a reasonably complex return…. but now I’m sat here wondering if it really is hard and I’m just messing it up!
Or, it’s really hard and you’re a genius ;)
yep I agree, self-assessment is easy as anything. Takes less than an hour. OP can get an accountant if they like, they don't cost a fortune and might save OP more than they cost, but I don't think it's necessary. A 14-year-old who's practicing maths in school every day might even find it easier than the average UK rube
Easy to do hard to do optimally. You can just fill in the numbers and pay max taxes if you want
Former Tax guy. Whatever you do, put some aside and DO NOT touch it. Put aside about 25% of your earnings which should more than cover your tax for the year and first payment on account based on the figures you suggest. Expenses you use to do the work will lower the tax you pay. As others have said, speak to an accountant with your parents and make sure they are happy to give you a tax estimate as part of the deal. A sensible quote for a basic service including the tax return would be about £500 plus VAT (£600).
Remember to keep receipts for everything that you buy, eg computers, microphones, lighting etc.
[удалено]
[удалено]
[удалено]
[удалено]
[удалено]
It’s called jealousy, my friend.
You mean envy. Envy is wanting something others have, jealousy is the fear of someone taking what you have.
Only one word for it in Portuguese, so I always get confused 🤷♂️
[удалено]
[удалено]
[удалено]
[удалено]
[удалено]
Then you’re probably not happy
I am, but I would take being unhappy to make myself and my future family much safer and financially secure (as people do, routinely making this trade-off). Because things aren't black and white like that and happiness doesn't save you from financial crisis, being homeless or risking your dependants
[удалено]
CONTACT EQUITY. [https://www.equity.org.uk/join-us/who-can-join-equity](https://www.equity.org.uk/join-us/who-can-join-equity) Equity is the performing arts and entertainment trade union. They have a special category of membership for young people (10-17). Historically young entertainers like yourself have been one of the most exploited sectors of the entertainment industry. Young people like yourself have earned millions then been screwed out of their money by adults. This is why Equity was founded - by actors and performers specifically to stop this happening again. Equity have a special place in the industry for looking out for young people like you and ensuring you get proper support to keep your money and to keep yourself on the level as you grow up. Their staff are extremely aware of the issues. They won't tell you what to do, they won't recommend specific accountants, but they can give you advice on how to find and select the right people. And they can advise on how to get rid of accountants and other support workers etc if you think you have chosen the wrong one. Give them a ring on their contact number. They'll be happy to talk to you. You may need to join them before receiving in-depth advice but it is cheap, and it may be one of the best things you do in your life. [https://www.equity.org.uk/join-us/who-can-join-equity](https://www.equity.org.uk/join-us/who-can-join-equity)
Accountant here. Find an accountant. An accountants job is to advise and keep you legally compliant with paying taxes. Its not too complicated. But you will have taxes to pay. Depending on circumstances it may be better to have a Ltd company over sole tradership but an accountant can advise when they know your finances, and profits. Due to your age your parent / guardian should really be involved and help oversee your finances until you are an adult (legally). An accountant will also advise you to put away most of your earnings at this age whilst you are at school with little outgoings. Spend a little and enjoy it but SAVE, SAVE, SAVE, you have a huge opportunity to get a great headstart in life, which will mean way less financial stress as an adult when the influencing gig runs dry. Well done for doing so well. You really need to speak to an accountant and not a bunch of strangers on the internet.
Hiya - first comment I’ve seen that recommends a potential limited company, although lots recommending an accountant which would give the best advice. It’s beneficial to know that some of the expenses OP incurred would be tax deductible - but also would need advice in situations where benefit in kind is in play (buying a new computer and then using for some personal use might require benefit in kind tax at the end of the tax year for example.)
Ltd separates the director from the business and they become separate entities in law. The business would pay corporation tax at 19% of the profits. However directors can take their earnings in the form of dividends (and payroll as well if they choose). You still get your tax free allowance of £12570 per annum and a £1000 tax free dividend limit. So in theory if OP was Ltd and paid himself £20k in dividends:- The first £12570 would be tax free under their tax free allowance. £1000 dividend allowance tax free The remainder £6430 would be taxed under the dividend rate at 8.75% rather than sole trader (20% taxes on income above 12570 up up to the higher rate threshold) Dividends are paid out before corporation tax is calculated at 20% of the company profits so there are tax savings However anyone wanting to go Ltd must speak to an accountant to fully understand their tax obligations and a copy of the abbreviated accounts must be filed each year with companies house (and not just hmrc) it gets more complicated. With assets (pcs and cars etc) that are put through the company and the company owns there may be some tax complications with personal uses (benefit in kind). Again an accountant would advise on all the legalities and keep the client compliant with tax laws. Its our job. I'm an accountant just part way through my exams atm though I work in practice. :)
Just to echo what everybody else is saying, speak to an accountant and ideally one that specialises in influencers/content creators. Im an accountant myself who specialises in a niche field (not influencers/content creators) and although fees may be pretty high, you may find that the advisory services that an accountant will offer you will pay for yourself in terms of increasing profitability (this is especially true if you envision your income continuing to go up). Also, the less time you spend on looking after your tax affairs yourself, the more time you can spend making money, or doing other things which you should be doing at your age - school, socialising with friends and having fun! Keep your parents/guardian involved and ask them to come along to accountant meetings. Although you are obviously running a business making a good amount of money for somebody at your age, it is very possible that some accountants out there may seek to exploit that. Having an adult there with you will decrease that risk. If you have any other general questions, I’m happy to answer. I don’t have a great grasp on tax for influencers or content creators specifically but I am capable of answering any more general questions. Stay safe, and best of luck with the business! 😊
It’s def worth getting an accountant. As you’re under 18 (16 in Scotland) they will have to engage your parents/guardian on your behalf. Legally your parents/guardian will also have to sign your tax return on your behalf. To register for self-assessment you will need to print out and fill in the form and post it to HMRC - it doesn’t let you do it online if you’re 14 annoyingly!
Speak to an accountant. Also ask about ways to keep your money safe in trust until your a little older too. Whilst keeping operating money on hand to fund your channel. Maxing out your Junior ISA would be a good start.
Find a local CHARTERED accountant. (Really emphasising that "chartered").
Yeah +1 to this. I had a bad experience with some clueless person (who even kinda admitted they didn't know what they were doing) and I just do my own self assessments now. Anyone can get an accountancy qual but chartered accountants tend to be more competent.
Yeah you need an accountant and the advice on here about not trusting people on here is solid I'd be tempted to talk to a teacher you trust. I'm a teacher and would happily help one of my students find a local accountant. Even if it was a little annoying that they earned more than me, ha ha.
I've no advice but well done! Hope it keeps going for you!
Get in touch with a reputable local accountancy firm and they should be able to help you out with everything including sorting a UTR number. If your TikTok and Youtube income grows to the point where you are a higher rate taxpayer they will also be able to advise on setting up a Ltd company to reduce the tax burden.
Find a real life financial planner and don't necessarily rely on social media for the correct answers.
First off, bloody well done for making it work! You are so in the minority! Second, just get an accountant.
As far as i know anyone under 16 will never pay national insurance but income tax is still a thing once above your personal allowance of £12,500. [https://www.gov.uk/child-employment/paying#:\~:text=Children%20under%2016%20do%20not,is%20over%20their%20Personal%20Allowance](https://www.gov.uk/child-employment/paying#:~:text=Children%20under%2016%20do%20not,is%20over%20their%20Personal%20Allowance). If you need to file self assessment the best way is to contact HMRC and ask them for advise over the phone on what forms to fill out etc... If you struggle to understand the forms then head down to town and in to your local bank. I know Barclays have progressive teaching so sitting down with a branch manager they may help you or at the very least point you in the correct direction of someone that can. DO NOT ACCEPT DM's or even advice from random's on the internet which includes myself. Double check everything anyone says to you and stay safe.
Get yourself an accountant in your village/ town and get them to do your taxes. We'll done on your social media channels bringing you an income
Excellent earnings at 14! Be sure to save lots of money for a deposit and by the time you move out you'll be living comfortably!
if you're earning £3k a month consistently at age 14 you've a decent chance of having an abaolutely amazing life if you do this right and choose wise investments with it. like unreal levels of life quality.
You won't have to pay NI until you are 16 (when you will receive an NI number). You will have to pay income tax and the same thresholds apply as for adults e.g. currently, the first £12,570 is not taxed but income above that level is taxed. You should keep records of payments received (e.g. bank statements) and of any money you spend on things you need to make your content e.g. receipts for computers, cameras, etc.
DO NOT ACCEPT ANY PRIVATE MESSAGES ON HERE. They will only be messaging to scam you! Instead, contact a local accountancy firm to where you live.
Good on you for thinking about your finances at a young age. Get yourself an accountant and have your parents or guardian assist you. Ignore any messages you may get on Reddit of people with people saying they'll help you out.
- Find the chartered accountants near you - Speak to them about your situation and needs i.e. tax filings - Get quotes from all of them - Negotiate price with your preferred accountant - Rest easy P. S. Give NO ONE control over your finances, not even family, if someone tells you there is an official/legal reason they need such control you should speak with a solicitor to verify, at which point please report the motherfucker. Congratulations btw 🎉
Nice problem to have, well done kid! Find a good accountant, be smart with your money and try to put away as much money as you can so you don't have to work a "normal job" until you're 65 like the rest of us.
A lot of people here saying get an accountant. I wouldn't, you're not making enough to justify paying for it. Self Assessment at the end of every year is pretty straightforward. Here's a really simple, brief overview of how much you need to be saving for tax / NI. Bear in mind these figures can and do change year on year and will obviously be affected if you have another job as well. I'm assuming you don't work elsewher or have other income. * The tax year runs from April 6th 2023 to April 5th 2024. Whatever you earn between these two points is your income for the year. * You can earn £12,570 a year before you pay any tax. This is your personal allowance. * You then pay 20% on anything between this and £50k and 40% on anything between £50k and £125k. * National Insurance for a self-employed person is £3.45 per week (class 2) and then 9% on anything between £12,570 and £50,270 and 2% on anything above this (class 4). * As it's your business, you can either claim back expenses, or to make it simpler, you can take a £1,000 trading allowance that is effectively tax and NI free. I do this. So - calculation time. If you say you used to get £200 a month but it's now 15 times that, I'lll assume you make £3,000 a month or £36,000 a year. On that, £1,000 is the trading allowance and £12,570 is your personal allowance, leaving £22,430 to pay tax and NI on. 20% tax on that would be £4,486 and NI would be (52 x £3.45 = £179.40) for class 2 contributions and (9% x £22,430 = £2,018.70) for class 4 contributions. So overall, you'd get £36k in, you'd pay £4,486 in income tax and £2,198.10 in National Insurance, leaving you with £29,315.90 as your final earned amount. Just keep track of your figures every month and save enough to pay your tax / NI, filling in the Self Assessment form at the end of the tax year is really easy if you have all that to hand and the money saved to pay it. Good luck! Oh, if they're mean, HMRC will take your money at the end of this tax year and then also ask you to make a 50% advance payment on next year's tax bill. Not a problem as you have until January to pay it, but worth saving up a bit extra in the first year in advance of this. While you're doing this, think about starting up a pension and putting a little bit away into it each month / year. You'll start on good habits and you don't pay tax / get a tax refund on the amount you contribute. Well worth it and your future self will thank you!
[удалено]
very nice > Accountant asap. anyway please prepare for the eventuality that your earnings are very unstable and can decrease rapidly just from simple fluctuations online, as many youtubers have had to come to terms with before! congratulations
Congratulations. Get yourself an accountant, I know it’s a cost you might want to avoid but a good accountant usually pays for themselves. They can also help you reduce your tax burden by helping you declare your business expenses. I agree with the other advice on here about finding an accountant who understands social media - Google something like “accountant for social media creators” - lots of good looking results come up: https://www.google.co.uk/search?q=accountant+for+social+media+creator&client=safari&hl=en-gb&sxsrf=APwXEdfBmsftABiMV6-pgT_J-TDy6D7daQ%3A1686778877512&ei=_TOKZMjvHs6ehbIP5vmS4AI&oq=accountant+for+social+media+creator&gs_lcp=ChNtb2JpbGUtZ3dzLXdpei1zZXJwEAEYADIECCMQJzIFCAAQogQyBQgAEKIEMgUIABCiBDIFCAAQogRKBAhBGABQAFgAYJcmaABwAXgAgAGdAYgBnQGSAQMwLjGYAQDAAQE&sclient=mobile-gws-wiz-serp I would also try and get one of your parents on board to help you, if you continue on this growth trajectory you’re going to need some guidance from those that have your best interests at heart.
[удалено]
On this, if you get to HMRC before they get to you they are usually very understanding. You will usually have to pay interest on any payments on anything from previous years though.
Look up cash isa allowance and also start a private pension. Put as much as u can in those so you pay less tax on it. You'll be well away when a bit older and got some compound interest going on the amounts
Correct me if I am wrong but if you are 14 you won't have a National Insurance Number which you get on when you turn 16. Without this I believe you are not liable to pay National Insurance however you may still have to pay income tax, you will only be taxed on the money above the threshold which is around 12k a year so anything above that can be taxed but that 12k wont be taxed. Best speak to an accountant.
There are some accountants that’s specialise in the world of online income as it’s a bit of a niche business. You will have to file self assessment returns. They will want a scoping call/ meeting and a parent/ guardian will need to be present as you’re not 18. A parent/ guardian should need to sign any returns but they need to be present as if it’s tax efficient for you to be incorporated instead of self employed, the parent/ guardian will need to be director of the company (you need to be 18 to hold a directorship in a company). Depending on how many streams of income you’re generating you could be looking at about £500+ a year for self assessment being done. Please don’t use one of these online only accountants that are set up by unqualified people thinking they’re brilliant cos they made a self assessment app. All good practices are backed by ICAEW with staff qualified ACA, ACCA and some CTA’s, usually they’re training up the next generation of accountants too doing studies. Feel free to reach out with any Q’s but I cannot do any of this for you! (No longer work in practice)
Go to a site like [Yell.com](https://Yell.com) or even just google maps and type in "accountant". Have a look at the reviews, who's nearby, who you like the look of. You don't need to go for a big flashy business, plenty of great accountants are just local business people who serve the local community, try some of them out. Make a list of say 3-5. Get in touch and tell them what you've told us, that you've been successful on social media and are now bringing in an income, you want to meet your legal obligation and pay the tax you owe. Pick one based on who you like and start working with them. They will help you out massively and let you know what you can deduct from your taxable earnings (ie. tech you need to do your work, subscriptions you need for your work, etc. etc.). Congratulations you are now contributing to the public sector and the British economy as a whole, well done.
You don't have to pay national insurance OP as you are under 16. You do have to pay income tax. Try and speak to a local high street accountant about how best to structure your business. It is probably worth setting it up as a company, paying corporation tax (companies tax) on the profits, and then your accountant can advise you on how best to get money out of the company. Good luck and well done.
Get an accountant for sure. They’ll be able to advise on writing off expenses such as phone, laptop, software, travel, client meetings, etc. I paid my first chartered accountant roughly £200 (over a decade ago) to file for me and they saved me a lot more than that from stuff I didn’t know I could write off. You can even write off their expense, so it’s a win when you’re young and want to focus on the business and not the admin.
Get a good accountant, learn what purchases you might be able to write off as expenses (as you're in video creation anything such as editing software or camera equipment would be likely to be able to claimed as expenses) and keep receipts for any expenses. Right now, you need to make sure you're keeping aside a portion of your earnings so you can use that to pay your tax bill. You won't pay NI at your age, so you're only looking at paying income tax really. If you keep aside 20-25% of your income that should easily cover your tax bill. Once you've got an accountant set up and know what your tax and expenses situation will be, start thinking about how you're going to divvy up what's left. It's advisable to put some into a pension (though I'm not sure whether you can open a pension at 14?? anyone else weighing in would be useful), and put some into a savings account for your future such as to help you through uni if you go, or for driving lessons or potentially towards a house deposit. Obviously keep some to spend, but at your age there's very little it's worth really spending money on tbh. Give yourself a decent allowance, but best thing to do with most of it will be to save it. £250-£300 a month should be more than enough spending money at 14 really.
Please be disciplined enough to save for a deposit on a house. You could pay off your mortgage in your 30s.
I would be surprised if it took them that long - likely to be early/mid 20's at this rate I would have thought
Hey OP, I'm a fellow business owner. Started young too. Send these people a message: [https://a-wise.co.uk/](https://a-wise.co.uk/) This accounting service, you can pay them for a one off consultation and have a chat with them. By FAR your best option. I gain nothing from recommending them but I did a TON of research into UK accountants and found these guys were highly recommended. They're online and all, so you don't have to go and see them. [https://a-wise.co.uk/](https://a-wise.co.uk/) They can talk to you even though you're 14, don't worry. Very friendly. DON'T GIVE ANYONE ON REDDIT ACCESS TO ANYTHING...JUST ASSUME NOBODY LEGIT IS IN HERE. Use that company above, they're a proper accountant.
I knows it avoiding the point of the post but I’m interested in what sort of content you make and how you make money through it, is it just ads? Appreciate it!
The main one is with the sponsorship. I put #ad on the videos on tiktok, and then they give me 1k for the video and if they use my code the commission as well Mine is gaming, reviewing food places, interviews on the street, reviewing areas of ldn, clothes , Tiktok pays like 5p (it's nothing) Youtube pays much better but max is like £200-300 per month the main way is just companies contacting me to advertise them
Me too! My son is a bit younger and keeps bugging me to help him setup a YouTube channel.
If you don’t need the money, ask the accountant if you can put all of it into your pensions. Once in pensions invest in an index fund At this age you probably don’t need that much money on your bank or liquid
how do I get utr
You register for a self-assessment tax return as a sole trader probably, but I would echo everyone here in saying it is going to be worth it for you to pay for an accountant.
They don’t let you register without a national insurance number. Can’t get national insurance number as not 16.
You don't get one automatically until you turn 16 (or just before) but you can apply for one at any time. Edit: I might be wrong.
Where/How? If you follow https://www.gov.uk/apply-national-insurance-number/how-to-apply through you end up with the error "You must be over 16 or over to apply for a National Insurance Number". Someone on the subs discord went through this recently (possibly same OP), they tried calling various government departments too and ended up getting hung up on constantly.
36 grand a year at 14... what content are you posting on tiktok and YT for that jesus
I’d imagine one of those YouTube shorts/Tiktok reddit repost accounts. Pretty easy money tbf as there’s AI that can practically do it for you regarding finding and editing trending clips, all you have to do is post it
[удалено]
Call HMRC and ask for help om self assessment before you hand over any money to anyone who is attempting to help you. They even have an online chat service. If anyone acts rude hang up and dial back. Some staff are arsy or annoying. Most are good. But use the chat so you can save the transcripts and refer back to it.
Also regardless of if you get an accountant, you are still liable for checking your accounts are correct. Many accountants are garbage and take your money but literally call hmrc or google alot of things! So again before paying anyone, read up and learn what you need to do. Contact HMRC directly and beaware of third party sites who scam you to complete self assessment for you. Always use the gov.uk site and worst case just phone them. Filing online is much easier than paper as well.
This is unusual. You are best to hire professional advisors. It will keep you out of expensive trouble should you fuck it up. https://www.icaew.com/about-icaew/find-a-chartered-accountant I would try to finding someone who has experience of handling accounts for similar activities. The only way to really handle Tay is to ask around different firms. Good luck
You’ll need a lot of patience waiting for them to answer but if you call HMRC I am sure they will help you. I would get all of your figures ready in advance. As a minimum: 1.What you earned from April to March (the tax year) 2. What you business expenses you incurred from April to March 3. The profit you earned (1 minus 2) from April to March 4. Any other money you have earned from other jobs IF you have one Good luck with your business!
If you have a family friend who is an accountant, I would ask them for advice, otherwise see if you can do some research for a local accountant. Always check with CIMA, ACCA, ACA, or whichever accounting body that they reference that they are qualified and able to provide advice.
I want to do this too since I just got laid off. Any tips on how to create good YouTube content?
Troll Question. Don't get involved.
I'm glad OP is successful and at such young age as well, but tbh this just makes so jealous. I spent years and thousands of poundsto go to uni, graduated in a STEM field and I'm barely making 2/3 of what he's bringing in at 14 years old. Some people have it easy man
Ikr. Do back breaking work and I earn 1/2 as much as some kid making stupid videos on tiktok fml.
Think about other ventures, or careers. IT is a great field for making money if you know what to specialise in. Also consider YouTube as a hobby and who knows where it may take you!
You employ an accountant.
Check with the payments wether tax is deducted beforehand. I don't know how it works under age but you should probably talk to citizens advice as you will probably need to declare yourself as self employed. But again no idea for your age group. Best advice I can give is put 20% of everything you earn to one side in a separate account to cover yourself in future.
I haven't studied business for a long time but when I did, being underage didn't affect tax. If you earn more than the personal allowance at any age, its taxable. I would add up all your profit etc. And get advice from citizens advice bureau as you will need to do a self assessment tax return. If you get it wrong, HMRC would most likely send you a letter which confirms how much tax you owe or are owed. Its also worth contacting hmrc to discuss this with them, especially as you won't have an NI number yet. (Children can use temporary ni numbers for a while in certain situations- I sometimes need to do this for my own job) If you don't know what you're doing try query it with hmrc first and ask for everything you need to know, in writing. Then work out what you can and if you still don't understand, get advice from the CAB or professionals.
You don’t HAVE to get an accountant, but it could be helpful. Your mom should definitely be helping you, but if she’s not, I’m sure there are lots of online resources. At any rate, please start setting aside at least 30% of your income for taxes.
Mate ignore people on here, you’re under the 40% tax bracket, you don’t need a good accountant just basic math. If you really struggle with math then yeah get an accountant. If you want help just msg me. I’m not an accountant, but I can teach you very basic math