limited / limited liability partnership. help!!

[moogy1a]

Ok,
Go easy on me and explain in nice simple terms please!!
I'm a childminder who currently does self assessment.
My husband is going to be my assistant.
We think it'll be better in tax terms if he is a self employed assistant and so will also do self assessment.
I believe it's better if we register as a business partnership?
Does that mean we can basically split the income / expenses and write off our own deductions?
Would this be a limited or a limited liability partnership and what's the difference?
I've looked on the gov. site but it seems to assume knowledge of the difference and my brain hurts!!

Basically:

1. you are self-employed because you choose who your clients are and how much to charge and the hours that you do

1. Your husband is not self-employed if he is your assistant, as he works for you

1. If you are a partnership, then you are both self-employed, running a child minding business, with you as a hands on role and he is in a admin role.

The difference between 2 & 3 is quite big in tax terms and, if it is correct, 3 gives a better answer.

To be a partnership, there is no requirement for any legal stuff, you tell HMRC you are a partnership. For tax returns, the partnership completes some accounts (income less business expenses) to calculate the partnership profit and then split the income how you choose (does not need to be 50:50). You each then complete the self-assessment based on your share of the profit.

Whilst this does not need a written agreement, something between you and your partner is sensible.

A limited company/limited liability partnership is a legal arrangement that comes with additional paperwork and reporting requirements and is designed to prevent you being personally bankrupted if the business owes money and goes bust. I would suspect this is not necessary for you.

pm me if you have any further questions you would rather not share on the whole board

Thank you so much.That's really helpful.
One last question!
So I don't need to register as a limited company at all if I don't need to. , just as a partnership?( we're talking after tax about 18 grand between us)

no need to register as limited co or limited liability partnership, just as a partnership here.

Each partner also registers for self assessment.

Broadly speaking, the partnership return says that the partnership earned say £30k - remember the partnership expenses to include (toys, paints etc ) used in child-minding.

The partnership return, from memory, asks for the split of the profit for each partner, say 50:50.

Each partner then states their self employed income as £15k, and fills in the rest of the form.

You will need to keep reciepts for all expenses and all paperwork for 7 years.

Tax and class 4 NI is paid in 2 lump sums, at end January and end July.

Class 2 NI is paid weekly or monthly.

In my experience, if you put a third of your income into a savings account, this should cover tax and NI bills when due.