Employing your teenager to work for you

When your child turns 13 years old, they can legally work for your limited company. There are restrictions on what work they can and cannot do – no chimney sweeping allowed! This could be a good opportunity for your child to learn more about business and for your company to benefit from additional support.

Be aware that if you employ your older teen, the rules are slightly different when they turn 16 years old. From this age, they must be paid the national minimum wage and their salary recorded within your payroll as you do for adult workers.

The rules about employing teenagers aged 13-15 years old

Unless your child is working in the theatre, television or in modelling, they cannot work part-time in your business until they turn 13 years old. At this point, they can work for your business with certain restrictions.

Teenagers are still in full time school and are likely to need a permit to work. This is issued by the education department of the local council so check with your local authority if this is required. A work permit is required for teenagers working in Hertfordshire and Essex, for example.
Children cannot work in factories or on an industrial site or do any work that may be harmful to their health, well-being or education
Working hours – children cannot work during school hours, for more than one hour before school starts, or before 7am or after 7pm.
Children cannot work for more than 4 hours without taking a break of at least 1 hour
They must have a 2-week break from any work during the school holidays in each calendar year

There are different rules whether they work for you during term time or school holidays.

Term time rules for working teenagers

During term time children can only work a maximum of 12 hours a week. This includes:

a maximum of 2 hours on school days and Sundays
a maximum of 5 hours on Saturdays for 13 to 14-year-olds, or 8 hours for 15 to 16-year-olds

School holiday rules for working teenagers

During school holidays 13 to 14-year-olds are only allowed to work a maximum of 25 hours a week. This includes:

a maximum of 5 hours on weekdays and Saturdays
a maximum of 2 hours on Sunday

15 to 16-year-olds can work a maximum of 35 hours a week. This includes:

a maximum of 8 hours on weekdays and Saturdays
a maximum of 2 hours on Sunday

Paying a realistic wage to your teenager

Be aware that if you hire your own children, you must pay them a realistic salary. A director of a company has a fiduciary duty to do the right thing, which means paying employees what they are worth. This works two ways – to pay them enough for doing the job and to not overpay them. Hiring a 15-year old on a £20,000 per annum salary, for example, may attract HMRCs attention unless the child has an exceptional skill.

For more information about hiring your teenager to work in your business, including finding out what work is permitted and applying for a work permit, visit your county’s Education website page. Links for Hertfordshire and Essex are here.

If you want to discuss this further – or indeed any aspect of payroll or business accounting please contact the HB team on 01992 444466. We’re experts ready to support you and your business, no matter your company size or sector.

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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above