CMH161821

I would say we fulfil the criteria of a partnership per PM120100. So does this mean we HAVE TO register a partnership and pay tax on our split of the partnership profits? Or can we still CHOOSE to register as self employed and pay tax on an appropriate split? Also, I understand we would need 3rd party software to file a partnership tax return online. It is much easier to file a self-employment page (as an additional page on our own tax return). So purely from an admin point of view we would choose to register as self employed, if indeed we have the choice. Please advise. Thanks

My spouse and I run a small business together walking dogs. Income and expenses go through our joint personal bank account. We advertise as a couple. We don’t have our own client list as such although my spouse tends to do more of the walks. Can we both register for self assessment as sole traders and each declare a % of the profits roughly in proportion to time spent on walks? Or do we have to register a business partnership with HMRC and then each declare a % of the partnership profits? Is the business structure for tax purposes (two sole traders running one business together OR two partners in a partnership) a choice for us to make or does the set-up dictate the structure?