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Where Taxpayers and Advisers Meet

New venture

eka340
Posts:1
Joined:Sun May 27, 2018 1:47 pm
New venture

Postby eka340 » Sun May 27, 2018 1:54 pm

Hi All


This is my first post on so I hope I have chosen the correct section - feel free to move if not.


My partner and I are planning on starting a new small venture together. At present, I am PAYE (higher rate of 40%) and my partner is a sole trader (income generally £40k to £50k).


We both plan to keep our current jobs in conjunction with the new venture.


Obviously we will take professional advice before embarking on this - but as a general rule, what would be the most tax efficient way for us to embark on the new venture?


Would working in partnership benefit us, or should we consider setting up a Limited Company given we are both already in the higher rate tax bracket?


We don't anticipate making large profits in the new venture for the first few years, with takings expected to be between £15k to £25k.


Thanks for your help.
Stephen

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: New venture

Postby AmanSood » Mon Jun 11, 2018 1:24 pm

given that you plan to keep your current employments, then most efficient approach would most likely be to set up a company in which you are joint shareholders/directors of it and pay yourself dividends. but as you say you need to obtain tax advice to ensure this is the best approach for you given your circumstances.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


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