I earn 43k a year (does that make me a high rate taxpayer?) and I would like to startup a small photography company with my wife who is a fulltime mum. We do not expect to make more than £7k-£10k a year. We would take it in turns to go out and photograph weddings with the view for it to become her business in the long term (my job is demanding as it is!). We are going to put in £7k worth of capital to buy equipment as well.
I have been looking at setting it up as a sole trader in her name, but would it make a difference if I helped her out by going out and doing the bookings, or would she have to show me as an employee? How would it impact my current earnings and tax situation? I am hoping to remain at arms length from the business as much as possible.
Any advice would be greatly appreciated!
