2 Self Employed Carpenters Working As Partnership

Louise07 | 20:16 Sat 26th Jan 2013 | Jobs & Education

6 Answers

hi my hubby is thinking of going self employed. he has a friend who is also a carpenter. if they worked as a partnership how does this work in terms of tax etc. do they bith just register as self employed? if someone could explain as much as they know about being a partnership in a trade that would be great thanks

Salary For Self Employed Carpenter

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Buenchico

See here:
https://www.gov.uk/set-up-business-partnership

Chris

Louise07

Question Author

thanks. also what happens if my husband starts on his own so registers as a sole trader and then decided to go as a partnership at a later date. is it as simple as notifying hmrc or more complicated than that

Maydup

They're best to start off as self employed and see how things go.

It sounds as though they need some Business Start-up advice. There's plenty around and it can often be obtained for free. Don't let them do anything without it.

Buenchico

My understanding is that he'd need to complete a 'final' self-employed tax return (in the same way that he would if he was taking up an employed position with PAYE) and then start fresh accounts for the partnership, ensuring that he doesn't try to claim his personal allowance twice for the same tax year.

buildersmate

Partnerships in building trades are more often forged between two (or more) tradesmen with different trade skills. That way they can provide project solutions to a wider range of business requirements without employing subbies.
Whilst I'm not saying it can't work, I can't really see any technical benefit.
There are of course the general benefits of being in partnership but there are downsides. Rather than rattle these off, there is an article here that covers some of this.
http://blog.thecompanywarehouse.co.uk/2010/03/01/advantages-and-disadvantages-of-partnership/

Chris' link (above) is good but it only explains the HMRC aspect of partnership.

Louise07

Question Author

thanks guys will have a read if the links you have provided. it was just a thought mostly for if alarger job came up that required two men like a roof. Thanks again

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