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Sole trader/partnership tax question

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 Tom Last 11 Jan 2016
Well what better place to ask than a climbing forum eh?

If anyone has set up a similar arrangement to those outlined below and can spare 5 minutes to answer a couple of questions related to this, i'd be very grateful - it's proving a bit of a headache.

I am currently a sole trader, but I am hoping to set up two separate partnerships with two separate people; each partnership is entirely unrelated to the other, with the exception that I make up one half of each partnership. One of my future partners is himself a sole trader, whilst the other is currently in full time PAYE employment.

It goes without saying that for each we will draw up partnership agreements, but that i trust each of the individuals absolutely. In each of the partnerships myself and my partner will each accept 50% of the potential work, debts, liabilities, profits/loss.

My questions are these.

First up, in the example of the partnership where each of us are sole traders, as far as I can tell, we don't need to adopt any sort of overarching framework that itself is liable for anything, rather we make all of our partnership accounts up (in duplicate) and then calculate for the tax liabilities in our own individual tax returns. Am I correct in this?

Secondly, assuming the above is correct, by what process can my PAYE partner set himself up to account for his tax liabilities from our partnership? Is it possible to register as a sole trader (or equivalent) for secondary employment whilst still in a full time PAYE role for example?

Well, thanks for reading, probably questions more suited to an afternoon with an accountant, but thought I'd ask just in case.

Cheers,
Tom
 MeMeMe 12 Jan 2016
In reply to Tom Last:


> Secondly, assuming the above is correct, by what process can my PAYE partner set himself up to account for his tax liabilities from our partnership? Is it possible to register as a sole trader (or equivalent) for secondary employment whilst still in a full time PAYE role for example?

I know nothing about all the other stuff but having just filled in my tax return I can confirm you can register for self assessment and put multiple employments down on it and any other taxable income you need to declared (although I've personally got only one employment).

You should get a P60 every year for the PAYE role and you can use the figures on that to fill in one employment on your self assessment form and then you'll have to fill in some other part of the form for the partnership role.

Do it online and it guides you through the process (to a certain extent anyway, better than trying to do the paper form).


> Well, thanks for reading, probably questions more suited to an afternoon with an accountant, but thought I'd ask just in case.

> Cheers,

> Tom

OP Tom Last 14 Jan 2016
In reply to MeMeMe:

Cheers, MeMeMe. That's helpful.

Tom

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