Under 18...Tax?

[fthom]

Hi,

I'm am looking at starting a web & graphic design business. I'm 16 - is it legal (in uk) to actually have a business and be under 18? Also, as I am still in education and don't pay tax in my part time job would I have to pay tax if I started a business?

Many thanks in advanced,

Fergus T

[armenh]

Hi,

I'm am looking at starting a web & graphic design business. I'm 16 - is it legal (in uk) to actually have a business and be under 18? Also, as I am still in education and don't pay tax in my part time job would I have to pay tax if I started a business?

Many thanks in advanced,

Fergus T

I don't know about UK, but the deal here in california is you take out a sellers permit once you are 18 and over, technically you cant sell anything or offer a service if you are under 18, last time I checked. But you don't really need to conceal of your age when running a graphics design business. Its a business that 90 percent of teens are in if they are under 18, because they offer the lowest prices. IMHO just make a site and don't tell people how old you are, that way they will treat you like an adult and make sure you act like one too.
Good Luck

[mthomas]

I apologize as I can only be of limited help here, as I am located in the US, so the tax laws are most definitely different. But I can tell you based on my experiences, when I had a web design business at 15-16, I did pay taxes. I was incorporated so I had to pay corporate tax. I don't know if you are operating as a corporate entity (or something similar), but there is a good chance that you might have to pay taxes.

If you don't know an accountant, I would try to check out whatever governmental branch in the UK manages taxing and tax law and see if you can find out more information.

[Mega B]

In the UK as long as you are self employed or sole trader you can run a business but you cannot be a director or start a limited company until you are 18 the law changed on the latter just recently.The tax issue depends i guess on how much you earn and i would seek expert help on that one its best to check that one out with the local tax people.

[SophieM]

I am in the same position as you (16 on Wednesday). At the moment I am heavily researching into all the laws involved to see if I can actual set myself up properly soon.

However, for the mean time, I don't think I honestly earn enough to bother. Also, the kind of work you are looking into can be done pretty anonymously, setup a website and attract customers. That is basically what I do, but I have a much wider range of income sources.

Also, it depends on the kind of people you will be dealing with. As you are under 18 and don't have a proper business yet, you may want to stick to getting clients of places like "Digital Point" just for the time being, as then they won't be asking as many questions/wanting meetings in person.

That is the way I look at things, and I am in pretty much the same situation. Feel free to ask any questions. PM me if you want any help/advice.

Sophie

[fthom]

Thanks for all the replies so far! Had anyone out there actually had a business at 16 (up to 18) and managed to do it legally?

Thanks, FT

[liveirisjul]

In that case there is a good chance that you might have to pay taxes...

[rpermana]

if you don't exceed a certain limit in your earning, i think you can avoid tax.

[dbhamster]

I apologize as I can only be of limited help here, as I am located in the US, so the tax laws are most definitely different. But I can tell you based on my experiences, when I had a web design business at 15-16, I did pay taxes. I was incorporated so I had to pay corporate tax. I don't know if you are operating as a corporate entity (or something similar), but there is a good chance that you might have to pay taxes.

If you don't know an accountant, I would try to check out whatever governmental branch in the UK manages taxing and tax law and see if you can find out more information.

mthomas,
You said that you had a business at 15-16. I'm trying to develop iPhone apps even though I'm under 18. I thought if I had my own business than I could be allowed to do it. How did you start an incorporated business even though you were under 18?
thanks
dbhamster