If My Website is Under my Parent's Name, Will They Need to Pay Tax?

[FrigidARC]

Hey, I'm 14 and trying to make some money. It says the person who owns the account needs to be 18, but if I have my own joint bank account with my parents and they are listed as the name under my store, would they need to pay taxes even though I'm not using their SSN (As I'm in the UK), and I have my own bank account which the funds are being transferred into directly? Would the fact that it is a joint bank account and the website being under their name be enough to make them pay taxes on my income?

[JustMe22]

How is electronic income reported in the UK? If it is reported automatically, Shopify will send the income to the shop owner (if that is your parents, the income will be theirs). I would consult an accountant in your country about this. 

[SEOKart]

Hello FrigidARC,

Thanks for reaching out to the community!

Well, I did some research and found that in the UK, if one is a beneficiary of the bare trust (as you are in this case), that person is responsible for declaring and paying tax on that income.

So, even if the Shopify store is under your parents' name, you are generating the income so you will be taxed for that income. 

However, I could not find whether the beneficiary will be liable or taxed in case he/she is underage. You shall carry out your research for the same.

You might find this link helpful - https://www.gov.uk/trusts-taxes/beneficiaries-paying-and-reclaiming-tax-on-trusts#:~:text=If%20you'r.... 

Hope it helps!

Leesha

SEOKart

[JustMe22]

but a trust has to be established first? I tried to check this out and it says rigorous rules and an established trust. The OP isn't saying a trust has been established or perhaps I misunderstood.