Help or Advice Self-employed as a Partnership

Chammy

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Has anyone done this?

I've been a sole-trader for years now but the husband has decided he wants to be completely self-employed after he finishes uni and is making the start now.

We both work from the same home so already share things like broadband, electricity etc but also things like hosting, social media scheduler and other things (I can't think of). Broadband is in his name, hosting is in mine so for tax purposes, I'm assuming we'd have to invoice each other for our share to add to returns so I was thinking of just turning us into a partnership...

Has anyone else done this? Is there anything involved that I should be aware of? Anything that we should do differently to being individual sole traders like banks accounts etc.
 

Jon

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Has anyone done this?

I've been a sole-trader for years now but the husband has decided he wants to be completely self-employed after he finishes uni and is making the start now.

We both work from the same home so already share things like broadband, electricity etc but also things like hosting, social media scheduler and other things (I can't think of). Broadband is in his name, hosting is in mine so for tax purposes, I'm assuming we'd have to invoice each other for our share to add to returns so I was thinking of just turning us into a partnership...

Has anyone else done this? Is there anything involved that I should be aware of? Anything that we should do differently to being individual sole traders like banks accounts etc.
as you've highlighted sharing costs would be the main thing.

Are the two of you going to be 'one business' or 'two separate businesses'

Freeagent (which I ALWAYS recommend you should use for accounting) has got some blurb

 

Rs20033

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The VAT threshold for a partnership is the same as for one sole trader (£85,000 total - you don't get £85,000 per partner). This might not be relevant to you now, but it's definitely worth considering for the future (you would be allowed £85,000 turnover each as sole traders before having to register for VAT).
 
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Jon

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The VAT threshold for a partnership is the same as for one sole trader (£85,000 total - you don't get £85,000 per partner). This might not be relevant to you now, but it's definitely worth considering for the future (you would be allowed £85,000 turnover each as sole traders before having to register for VAT).
see that joint tax threshold must work out badly compared to BOTH having the threshold individually
 

Chammy

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as you've highlighted sharing costs would be the main thing.

Are the two of you going to be 'one business' or 'two separate businesses'

Freeagent (which I ALWAYS recommend you should use for accounting) has got some blurb


I don't think we've really decided on that part yet.

I have my blogs, my streaming and anything else I find and he currently has his streaming. We have talked about him taking over some of the blogging, especially if I get my masters so we kind of dabble in each other's businesses.

The VAT threshold for a partnership is the same as for one sole trader (£85,000 total - you don't get £85,000 per partner). This might not be relevant to you now, but it's definitely worth considering for the future (you would be allowed £85,000 turnover each as sole traders before having to register for VAT).

£85k between us would be a dream - I don't even meet the personal tax threshold :ROFLMAO:
 

Jon

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it's turnover not profit so it's not THAT hard to hit sadly!
 

Chammy

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it's turnover not profit so it's not THAT hard to hit sadly!
Yeah, my turnover doesn't even hit my personal tax allowance :ROFLMAO: Last year was the first time I had to pay any NI contributions. So, for 2020/21 I only just hit £8k in total income...I know this is heavily influenced by the fact I've been at uni for the last 3 years so only doing the very basics but unless the husband becomes a Twitch superstar over the next 12 months we don't have to worry so much....yet!
 

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