Tax advice

Members online

Total: 353 (members: 10, guests: 343)

Share this page

Status
Not open for further replies.
S

Skimble

Member
Hope this is the correct forum for this!

just looking for some advice on partnerships. I've recently started working with a buddy and we are both sole traders. Now we want to operate as the same company and I'm not sure what we should set up as.

i understand as an LLP you have to update companies house etc, as I'm doing my own accounts I'd rather not over complicate things.

Is there a partnership where this is not necessary and is as simple as sole trader accounts? If so, are there any drawbacks to this type
of partnership?

(*emits bettertax bat sign!*)
 
Sounds like a job for @BetterTAX. I teamed up with another spread and we have worked together for 5 years, we decided against starting a new company name as we both had a long history of advertising under our own names. We are probably missing out on tax benefits not forming a partnership but our arrangement works well for us, like they say "a partnership is a sinking ship"
 
Last edited by a moderator:
Olican said:
Sounds like a job for @BetterTAX. I teamed up with another spread and we have worked together for 5 years, we decided against starting a new company name as we both had a long history of advertising under our own names. We are probably missing out on tax benefits not forming a partnership but our arrangement works well for us, like they say "a partnership is a sinking ship"
Click to expand...

Thank for advice. So if you get a cheque do you just get it made out to one of the company names and pay the other as a subby?
 
Month by month it's different, we try and alternate payments. Some clients will split the payments and give us 2 cheques.
 
Skimble said:
Thank for advice. So if you get a cheque do you just get it made out to one of the company names and pay the other as a subby?
Click to expand...
Are you both on deductions of 20% or full pay card ? don, t do a partnership mate if you can help it :RpS_crying:
 
I know what you mean skimble, it was a bit like that for us when we started but it gets easier and now it's just routine. I keep a diary and make a little note every couple of days. We have both had companies in the past and this way feels a lot easier for us.
 
Skimble said:
We have done this in the past, I find some people can be a bit funny about it. I may just be paranoid though. Also it gets a bit complicated with materials and stuff for the books.
Click to expand...
We just get materials on account then split the bill
 
Olican said:
I know what you mean skimble, it was a bit like that for us when we started but it gets easier and now it's just routine. I keep a diary and make a little note every couple of days. We have both had companies in the past and this way feels a lot easier for us.
Click to expand...

i saw saw your mate the other day Ollie in the pub then the bookies and the things he was saying about you... :RpS_sneaky:
 
i think that you have missed the most important thing about a partnership that is that both of you are liable for each others tax, ie i one of the partnenship goes missing or does not save any money the other person is liable for his tax.
i have been in partnership before with my brother, the trouble is we worked together all day , but you still have to ask every time you want to book a job in, have we got ourselves double booked.
now i am a sole trader who works with two of my sons and one of our pals, all plasterers. i do most of the quotes, purchase the materials, produce the time table, and make sure that we all go home with our pockets full.
 
Olican said:
Sounds like a job for @BetterTAX. I teamed up with another spread and we have worked together for 5 years, we decided against starting a new company name as we both had a long history of advertising under our own names. We are probably missing out on tax benefits not forming a partnership but our arrangement works well for us, like they say "a partnership is a sinking ship"
Click to expand...

Oh.............hello sailor.....................:RpS_wub:
 
We had 2 tackers partner up, one was slighty less dopey than his mate who told me they were going on a 65%-45% split hmmm dont think you are lol.
 
scottie5 said:
We had 2 tackers partner up, one was slighty less dopey than his mate who told me they were going on a 65%-45% split hmmm dont think you are lol.
Click to expand...

did ya keep a straight face or just piss ya sen when he said it............................:RpS_laugh:
 
Thanks for all the advice guys. It sounds like we are best to stick as sole traders then. As regards the Inland Rev I guess they don't mind as long as they get paid? If they checked us out they could see we are a partnership but operate as sole traders.
 
Stay as a sole-traders and just pay the other for his work on your job as you normally would on the cis scheme.
As for collecting two cheques from the customer, what the hells that all about? You would look very unprofessional!
 
Hi guys,

Not ignoring you... I didn't see the mention.

If you want to have a chat about what may be best for you, give us a call. Sounds like you have had some good advice from people here already though.

p.s. what are tackers?
 
BetterTAX said:
Hi guys,

Not ignoring you... I didn't see the mention.

If you want to have a chat about what may be best for you, give us a call. Sounds like you have had some good advice from people here already though.

p.s. what are tackers?
Click to expand...
Plasterboard fitters,
 
Status
Not open for further replies.
Top