Traditionally teenagers wishing to earn money after finishing their exams have looked to retail or hospitality. However, with both industries taking a hit over the last year and a half, part-time jobs can be thin on the ground.
More and more young people are looking at the opportunities to earn money created by lockdown. This could include pet sitting or walking for those owners who are now going back to work and having to leave their pets alone all day, gardening work for those who have grown to appreciate their outside space even more or offering tutoring to younger children who may have suffered during home-learning.
Young people are using their initiative and coming up with ideas for part-time work, but by doing odd jobs they will in fact be Self Employed for tax purposes.
The good news is they can earn up to £1,000 per tax year without having to worry about the tax man, but if they are lucky enough to earn more than £1,000 in a tax year, they will need to tell HM Revenue & Customs (HMRC).
It is also worth remembering that the number of ‘qualifying years’ you have for National Insurance purposes determines the level of state pension received. In order to have a ‘qualifying year’ anyone 16 and over would need to pay Class 2 National Insurance if they are Self Employed or be employed and earn at least £120 a week.
The number of teenagers thinking about their state pension are probably few and far between, but in the future they may be pleased they actioned this.
Would you like to know more?
If you would like to discuss the above or how it may affect you, please get in touch with your usual Blick Rothenberg contact or Stefanie Tremain.
For any press queries, please contact David Barzilay.