Have Tax Questions? Ask a Tax Expert for Answers ASAP
There is no company as it would need to be a limited company registered with Companies House and HMRC.
Strictly, as there is a joint bank account it would be preferable to register a partnership but as the end result will be the same in that your son will pay the same amount of tax because a partner is effectively treated as self-employed, then it makes no real difference.If your son's friend doesn't want to be in a formal partnership, then he and his friend should split all the income and expenses on a 50:50 basis or whatever proportions they split the income and expenses in and disclose their respective shares of the income and expenses in their individual tax returns. They should keep a record of the names and addresses and national insurance numbers of the other players who they sub-contract. They should also get the players to provide invoices if they can persuade them to.I hope this helps but let me know if you have any further questions.