The answer is that companies can claim tax deductions for expenses where they are “wholly and exclusively for the purposes of the trade” and therefore there is no reason why family members, including your children, can’t be paid provided the company gets value.
The family member can be employed in any capacity – filing, administration, cleaning company cars, IT – as long as they provide your business with a service.
The huge advantage is of course that you won’t need to find so much money to support them; the payments are tax deductible for the company, so saving business tax - and you are no longer paying them from your own income which has already suffered tax and national insurance.
