The Short Answer
Yes! You can employ your own child in your business, as long as the work is genuine, the pay matches the job, and you follow the rules around age, hours, and (for younger teens) a child work permit.
My daughter now does social media and general admin for my husband's company. She's paid properly, on the books, for real work she actually does.
I'm not just telling you this because it's good tax planning, although it is. I'm telling you because we've genuinely done it, and it's been one of the easiest, most worthwhile things we've set up this year.
Our Own Experience
We applied for a child work permit through our local council so my daughter could work for my husband's company. I expected forms, delays, the usual. It took about a week to come back, and it was genuinely straightforward.
She now helps with social media and general admin. It's real work, she takes it seriously, and it's taught her more about responsibility and money than any pocket money ever did. She understands now that being paid means turning up, doing the job properly, and that money doesn't just appear.
Getting a Child Work Permit
If your child is under school leaving age, most local councils require a child employment permit before they start work. You apply directly through your council's website, usually with details of the employer, the hours, and the type of work.
- Apply through your local council, not HMRC
- Be clear and specific about the actual duties
- Keep hours within the legal limits for their age
- Don't start them working until the permit is approved
It's a permit for the child to work at all, not a tax thing. That bit comes next.
What Counts as "Genuine" Work
This is the part people get nervous about, and rightly so. HMRC is fine with employing your child, but the work and the pay both need to stand up to scrutiny.
Social media posts, admin, filing, answering emails... all genuine, provided it actually happens and the pay reflects a fair rate for someone their age and experience. What you can't do is pay your child £200 a week for doing nothing. That's not employment, that's just moving money, and HMRC will see straight through it.
There are also restrictions on what a child can and can't do, on top of what counts as genuine work. Age limits and hour restrictions apply, and certain tasks simply aren't suitable for younger employees, so it's worth checking the rules for their age before deciding what to hand them.
Why It's Good Tax Planning
Paying your child a proper wage for real work is a genuine business expense, so it reduces your company's profit, and with it, your Corporation Tax bill. It's the same principle as any other staff wage.
Your child also has their own personal allowance, so as long as they stay within it, there's often no tax for them to pay either. It's money that would likely have come out of the business anyway, just landing somewhere far more useful.
What It's Actually Meant For Us
My daughter now pays her own phone bill and her own gym membership out of her wages. If she wants to go out with friends, that comes from money she's earned, not money we've handed over. It's completely changed how she thinks about spending.
Because she's a genuine employee, we can also give her trivial benefits, the same small tax-free perks any employee is entitled to. If you haven't seen my post on those, it's linked below. It's a nice way to say thank you for good work without it costing anyone in tax.
Don't Forget the Practical Bits
As well as the tax side, make sure you've got employers' liability insurance in place before your child starts, the same as you would for any other member of staff, and check your policy is happy covering a younger worker.
Keep It Simple: Do It Properly
If you're thinking about employing your child, keep it genuine: real duties, a fair wage, proper payslips, insurance in place, and a work permit if they need one. Keep a note of what they actually do, the same way you would for any other employee. It's not complicated, it just needs doing right.
One Thing To Watch Out For
Fair warning though... once your child realises they're technically an employee, don't be surprised if they start asking for a pay review, a lunch break, and their bank holidays off. My daughter's already worked out that "staff" means she can put in a grievance about the wifi.