My 16 year old daughter wants to sell handmade jewellery online, but payment processors won’t allow her to use her own bank account due to her age. If I receive the payments in my bank account and then transfer the money to her, would there be any tax implications for me? 

Arthur Weller replies: 

There could be tax implications for you. HMRC may claim that it is your income, and then you would have the headache of explaining to them that it is really not your income, but your daughter's income. You are best off setting up a new bank account in your name, in trust for your daughter, or alternatively, if you have a 'spare' bank account in your name that you are not using, you could write a declaration of trust that you are holding it on behalf of your daughter, who is the beneficial owner: see HMRC’s Trusts Settlements and Estates Manual at TSEM9930, TSEM9941 and subsequent pages.