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Where Taxpayers and Advisers Meet

Partnership

michaelhay1
Posts:1
Joined:Mon Apr 05, 2021 4:08 pm
Partnership

Postby michaelhay1 » Mon Apr 05, 2021 4:18 pm

Hi folks

Hoping for some advice if anyone is in a position to.

I’m currently in a partnership, and we’ve been looking to go Ltd for some time, but have always been put off by our accountant. This is mainly because we earn different levels of income, not linked to any particular percentage.

We spoke to a new accountant this week who also shared his concerns. We had looked into alphabet shares but we were told that if we were looked at by hmrc, then they may say that one of us is paye (although not quite sure how). We are currently effectively 2 sole traders who share a trading name and bank account so that we can share the costs of what we do.

Any ideas or advice would be greatly appreciated.

Many thanks

Michael

Incredulum
Posts:2772
Joined:Thu Dec 03, 2009 5:35 pm

Re: Partnership

Postby Incredulum » Thu Apr 08, 2021 1:13 pm

If you're two sole traders who share some costs, then incorporate two separate companies that share some costs?

I imagine a situation similar to the following: one of you buys and sells fruit, the other buys and sells vegetables. You share a market stall and therefore share the costs of the stall, insurance etc. but there is a very clear divide between the fruit and the vegetable businesses?


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