Thanks for your reply, I am still slightly confused so please can you confirm the following:-
We both have PAYE jobs which would continue as normal. Would we show this on our self assessments as well as the earnings from the partnership?
Just to clarify, using the 10K as an example,
If my partner is shown as the 'Apple IOS seller' he would complete a self assessment showing earnings of £10,000 less expenses of £5,000. Those expenses would be paid to me and I would complete my self assessment showing that amount as earnings. Therefore we would both pay tax on our £5.000.
So do we complete one separate form declaring that the partnership has made £10,000 and both sign it?
My partner will then declare on his self assessment that he earned £10,000 with £5,000 of that being expenses. What would these expenses be shown as?
On my self assessment form I would show that I have earned £5,000 from the partnership.
We would then both be taxed on our £5,000.
Is this correct?
Thanks so much for your patience in this matter.