rozzmozz
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RE: Can I switch from a partnership to employing a sub-contractor
Thank you for your reply. If we were to dissolve the partnership, would we still be able to work projects together where we send one invoice to the client then split the earnings? -
Can I switch from a partnership to employing a sub-contractor
My wife and I undertake a small amount of freelance work together, amounting to around £1,500 turnover per year. We are set up as a partnership where we each declare £750 a year, which is taxed fully as partnerships are not eligible for the trading allowance. Instead of using a partnership, would I be able to hire my wife as a sub-contractor on our projects, leaving us to individually declare the income as a sole trader? If yes, would I still be able to claim the trading allowance? How would I declare paying my wife on my tax return? Thank you