Advertisement

loader

Talk

Advanced search

Turning DH's freelance skill into a joint business. Implications for me?

(5 Posts)
0898 Wed 19-Nov-14 13:40:58

DH has been working as a freelancer for years and is registered as self-employed.

I've recently been made redundant and am fed up with working for someone else. I've always informally helped DH with managing his business and he's now suggested we start a business together based on what he does, but with me doing all the admin and marketing etc.

If he started another business under a new name and I was helping him (but not yet drawing a salary) would I need to formally register as a partner in the business for tax/NI purposes etc? I'd be the named contact for enquiries etc so am not invisible, IYKWIM.

Has anyone done this or have any knowledge of what my options and responsibilities might be? TIA!

0898 Wed 19-Nov-14 17:41:30

small bump for the early evening crowd smile

acharmofgoldfinches Wed 19-Nov-14 18:15:10

You could do it in various ways I should think. I run my own business - a limited company - and if you were working with me you could be:

(1) an official partner/director in the business ie named on all the official documents and you could take dividends rather than salary. You would be legally responsible for the activities of the business.
(2) an employee of the business and be paid a salary with you paying PAYE/NICS in the normal way. You would not be legally responsible for the activities of the business.

You can also combine 1 and 2, so as a Director you take some income as dividend, and as an employee you take some as salary - paying NICS ensures you are entitled to a state pension in due course.

It might also be possible for you to be a contractor to the business and charge it for your services, but as it would be your DH's business you'd need to get advice on how to set it up to make sure it's all straightforward tax-wise.

I don't know how it works if your DH is a sole trader ie you don't have a limited company; I'm sure someone else will come along to advise on that.

I'd recommend you get some advice from an accountant before you jump in any direction because there are different tax advantages/disadvantages (and varying levels of official paperwork) with each of these options.

I love being my own boss, so as long as it's going to work well working with your DH (I couldn't do it with my DH grin) then go for it!

0898 Wed 19-Nov-14 20:14:14

That is super advice, thank you very much. I have a session booked with a business start up advisor and I should definitely book in with an accountant. I hadn't considered the consultant option, that's interesting.

Hoppinggreen Sun 23-Nov-14 22:29:15

Me and DH both have our own companies and I work 1 day a week for him as a contractor ( ltd company). I bill his company monthly
I do have other clients though, you need to be careful as a contractor if you only have 1 client as it can look a bit like a tax dodge.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now