Is it essential to open a bank account for a minor in order to evidence that a discretionary income payment has been made to the child and not to their parent. And even if paid to the child’s bank account, can the monies be used to pay for school fees, holidays, clothes - is there any guidance or must it just be “for the benefit of the child” and how widely is this interpreted.
If paid to the parent’s bank account for the child, (assuming minuted by the Trustees to be a discretionary payment for the child) would this stand up to HMRC scrutiny if again it was used for the benefit of the child. The trustees will complete R185s and an income tax repayment claimed by the child.
Harold Sharp Limited