and welcome to the site. Thank you question.If the business is small and your annual tax bill amounts to less than £1,500 a year, you may wish to keep the biusiness in his sole name as sole trader.You have not stated whether you work part-time husband's business or employer.You should consider drawing a salary from his business assistance you provide in the running of the business (salary below the threshold contributions).If you were to become a partner, you would have to
- register assessment as a partnership
and file - a partnership tax return - individual tax returns showing your share of partnership profits.
These have costs associated with them if you were to engage a professional accountant to file the returns.Personally, I doubt there would be significant saving in the tax payable if you were to make the business a partnership.
I hope this is helpful and answers your question.
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I work part time Company and do not draw a wage from our business.
The business is a partnership business at present and has been years and I complete the self assessment and the partnership assessment.
Each year I have to pay tax and NI both with my own employment and business but as my husband turned 65 last year (2014) he has not had to pay NI and his tax element is taken from source - private and state pension.
Would this change if he changed the business to sole trader ie would he have a tax bill to pay each year instead of having the tax deducted automatically form his pensions.
Each year they cut his tax code accordingly so not sure if this is beneficial or not.
Ok, with this in mind would the tax element be roughly the same amount 1 person as a sole trader as it has been people in a partnership.
The amount of tax we have paid each year does not vary much but I need to know if because my husband receives pensions it would make any difference to his tax obligation.
My earnings per year through my part time job are under £10000 and my husbands pensions total about £19500, so is it better to stay in the partnership due to my low earnings which offset some of the tax liability.