Martin Lewis issues warning to all parents over child saving accounts
All parents with children have been issued a warning from financial guru Martin Lewis. During the latest episode of his ITV programme, The Martin Lewis Money Show, he left many watching from home and in the studio audience in shock as he gave a word of warning regarding child saving accounts.
The vast majority said they don't think children have to pay tax. However, they were quickly proven wrong as Martin revealed that in fact, they do - and there could be legal trouble if you hand them too much money, as reported by Yorkshire Live.Martin explained that children do actually pay tax and that they are legally considered 'taxable entities' by the government. He said this then means any money children earn can be taxed mostly just like an adult's earnings would be.
"This is important to understand. If the money you give them earns over £100 interest per year, and that's per parent, then it would be taxed at the parent's rate, not at the child's rate." Martin said. He continued: "But, what do you do about it? Well, if they're gonna earn more than £100 and you pay tax on savings then that's where a Junior ISA comes into its own."
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Martin Lewis provides 'best options' for how parents can manage children's moneyThere are a wide range of options available that allow parents to invest money into their child's future
Read more »
ULEZ expansion: Now not a good time, says money expert Martin LewisMayor of London Sadiq Khan has been heckled by a lorry driver over the expansion of the capital's Ultra Low Emission Zone during a cost-of-living event. The woman shouted at Mr Khan as he tried to justify the expansion, due to come into force in August.
Read more »
Martin Lewis issues important advice for parentsThe Money Saving Expert has told of the “four of the best options” currently available to parents looking to help their child save money
Read more »
Martin Lewis' eight-week word of warning to anybody who has a mobile phoneThe Money Saving Expert is urging everybody to 'act now'
Read more »
Martin Lewis reveals grandparents missing out on £1,000s of free cashMARTIN Lewis has revealed how grandparents can get thousands of pounds in free cash. The money saving expert explained how people can get help through “Specified Adult Childcare Credits”…
Read more »
Martin Lewis’ warning to 800,000 parents missing out £2,000 free childcareMARTIN Lewis has issued an urgent warning to 800,000 parents missing out on up to £2,000 free childcare. In the latest episode of his ITV Money Show, the consumer expert shared three scenarios wher…
Read more »