Good or bad idea? My DP owns the business, has done for 12 years, I have always worked there in some capacity (doing accounts from home- unpaid) but have also worked full time in other jobs to bring in extra cash.
I officially went on the books and quit my full time job after the birth of my DS who has been quite poorly to give us flexibility re hospital admissions ect, I work 16 hours per week. I am now 26 wks pregnant and we are considering making me partner in the business. I have no idea where I stand when in comes to maternity pay ect. If I do not qualify then I will still take a wage from the business but is this even legal when I'm not working??? Not.a.clue! Will it affect any working tax credits ect (not that we get much anyway!)
If you are an employee earning over £107pw you should qualify for SMP which as a small employer is entirely funded by the taxpayer.
If the business converts to a partnership (I assume your DP is currently a sole trader) with you and your DP as partners you will be able to work in the business and receive a share of the profit. This will affect your tax credits, although presumably not a lot as the overall amount of income coming in is not going to change.
Whether this is a good idea or not depends on a number of factors; you would need to go through the whole situation with an accountant to have a clearer idea.