Ashdown Hurrey provides accountancy, audit, tax and financial advice to individuals, businesses and charities. They aim to provide all the services expected from a city practice whilst retaining a focus on personal relationships.
Ashdown Hurrey focus on the financial wellbeing of their clients, starting right at the very beginning with the younger members of the family.
All children in the UK have their own personal annual allowance. Anti- avoidance laws prevent this allowance being utilised by parents of children aged under 18 with some minimal exceptions. If older children are employed by a parent, then they can receive income paid as wages - subject to the usual rules.
There are also special rules if a parent gifts significant amounts of money to their children which results in them receiving bank interest of more than £100 (before tax) annually. If this is the case, the parent is liable to pay tax on all the interest if it’s above their own Personal Savings Allowance.
The £100 limit does not apply to money:
Children born after 31 August 2002 and before 3 January 2011 were entitled to a Child Trust Fund (CTF) account provided they met the necessary conditions.
Junior ISAs were introduced after CTFs were phased out to encourage parents to save money for their children’s future. However, unlike the CTF accounts, the government does not contribute any public funds. Any income from CTF’s or Junior ISA’s is exempt from Income Tax and Capital Gains Tax on the child or the parent, even where the invested funds came from the child’s parents. The 2018-19 subscription limit for both CTFs
and Junior ISAs is £4,260.
Don't forget that the Tax-Free Childcare (TFC) scheme can help with childcare costs during the school holidays.
The TFC scheme helps support working families with their childcare costs and can be used to pay for regulated holiday clubs during the school holidays. The TFC scheme provides for a government top-up on parental contributions. For every 80p in the £1 contributed by parents an additional 20p or 20%, will be funded by Government up to a maximum total of £10,000 per child per year.
This will give parents annual savings of up to £2,000 per child (and up to £4,000 for disabled children until the age of 17) in childcare costs.
More than 58,000 registered childcare providers including school, football, art and tennis clubs have signed up across the UK. There is also an additional 30 hours free childcare available for working parents of 3 and 4yr olds in England.
The TFC scheme is open to all qualifying parents including, the self-employed and those on a minimum wage. The scheme is also available to parents on paid sick leave as well as those on paid and unpaid statutory maternity, paternity and adoption leave. To be eligible to use the scheme parents will have to be in work at least 16 hours pw and earn at least the national minimum wage or living wage.
If either parent earns more than £100,000, both parents are unable to use the scheme’.
Member since: 22nd March 2018
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