Child entrepreneurs in tax evasion shocker

Kids are making millions a year doing household chores. But are they registered as self-employed?

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Last Updated: 31 Aug 2010

Eee by gum. When MT were young, our pocket money were ha’penny a week – and a lump o’ coal if we’d been good. The kids of today, though, seem to have it a little better – apparently, with activities like washing cars, paper rounds and, um, developing iPhone apps (didn’t ‘ave that in our day) Britain’s 10-15 year olds are making a tidy little sum for themselves: £426m a year, to be precise, says a syrvey by Santander. Not too shabby at all – but we’re sure given the deficit he’s wrangling with, Mr Osborne would be very interested in whether or not they’ve bothered to register as self-employed…

We’re going to assume not – but we suppose with average weekly earnings of just over £46, or £550 a year, they probably wouldn’t qualify for the lower rate of tax anyway. Parents, for their part, aren’t exactly hard done-by either. Apparently, 40% of children earn their pocket money by doing household chores. Another 22% have managed to persuade their parents to give them pocket money, and earn extra cash on top. We suspect that’s the group which will end up being entrepreneurs.

Still, we suppose it’s a good way to get the entrepreneurs of the future going – and if the new coalition’s proposals are anything to go by, being an entrepreneur of the future is going to be a touch less complicated than being an entrepreneur of the present. Proposals like a ‘one in, one out’ rule for new regulations, less form-filling during company registration and automating small business rate relief seem to have got the thumbs-up from the business community. In fact, The Forum of Private Business says it’s come as a ‘breath of fresh air’ to businesses.

Not much detail from Messrs Clegg and Cameron on how they’re going to persuade banks to get that flow credit flowing in the direction of small businesses, though. We’d recommend those young entrepreneurial types start saving now.

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