16 year old Entrepreneur questions about tax

conorryanofla

Hi all,

I am 16 years old and run quite a few online businesses. Since I am not over 18, my PayPal account has to be linked with a bank account under my mom's name.
I am the one running the businesses and doing everything, just using her account to make sure everything is legal. Once I withdraw money from PayPal to her account, and from her account to my bank account, will she be liable to pay taxes?

She already pays tax at a high rate and I want to ensure it does not increase and that I am not breaking any laws. I am going to be paying all of my own tax legally with the help of her, I just need to know will she have to pay tax for holding funds temporarily in her account.

I appreciate all and any help,

Thanks

Atlantic Dawn

You should really setup a sole trader account at the bank and lodge all money through this with your mothers name on the account. Lodging the money through her account will make things messy and her then transfering it back to you makes it even more complex.

conorryanofla

Atlantic Dawn wrote: »

You should really setup a sole trader account at the bank and lodge all money through this with your mothers name on the account. Lodging the money through her account will make things messy and her then transfering it back to you makes it even more complex.

I've been looking into it the last few hours and I think I might set up a limited company. However, I'm nearly sure you have to be over 18 so I'll have to do it in a parents name. Unsure of the ins and outs of it, but I am aware of the low corporation tax, but unsure on the personal tax. Quite confused..

srsly78

Taxman will only look at bank accounts if there is an audit. So long as you declare all your income, keep records and make filings correctly there should be no problem. Make sure transfers in your mothers bank account are clearly identifiable as attributable to you.

What you are doing is probably against bank policy, but not illegal as such.