- Original Poster
- #1
Hi,
Sorry - I'm sure this type of question has been asked before but I've done a couple of searches and read through pages of threads... and couldn't find what I was looking for.
Here's a little background....(and apologies for the life story!)
My fiance and I were both made redundant last year. He has recently gone self-employed and set himself up as a sole trader offering consultancy services. For the time being I am going to be working for him, doing everything that's "back office" related e.g. bookkeeping, office admin, website design/maintenance, telemarketing, potential customer research etc.... i.e. leaving him free to concentrate on providing the consultancy service which will bring the money in!
My fiance needs my efforts full-time at the moment as we're at the beginning of a new venture but as time goes on he may not need so much of my time. Before being made redundant I worked as a manager in a Finance department and although I am pretty comfortable with bookkeeping, I worked for a US owned company and tended to get involved in other areas of finance. I am considering studying for some bookkeeping qualifications. If I become less involved in my fiance's business once he is more established then I may want to use my bookkeeping qualifications to take on my own clients.
My fiance should comfortably exceed the higher tax rate bracket and I will expect reasonable remuneration for my efforts. At a guess, if I only work for my fiance this tax year, on a full-time basis, I would like to think I could justify earning approx £20-£25k (which is half the salary I was earning in my previous job). All going well, I would hope he would earn at least 4-5 times more than me...hopefully!
I need to register my fiance as self-employed with HMRC. What is my status? Should I be employed by him? I assume this will mean he will have to pay 12.8% Employer's NI due to the salary I will be earning? Or can I be treated as a partner and therefore also register as self-employed?
On a side note, if I do set-up my bookkeeping service then I will probably trade under a different name to my fiance as his trading name is pretty specific to the service he offers.
I'd really appreciate any advice.
Sorry - I'm sure this type of question has been asked before but I've done a couple of searches and read through pages of threads... and couldn't find what I was looking for.
Here's a little background....(and apologies for the life story!)
My fiance and I were both made redundant last year. He has recently gone self-employed and set himself up as a sole trader offering consultancy services. For the time being I am going to be working for him, doing everything that's "back office" related e.g. bookkeeping, office admin, website design/maintenance, telemarketing, potential customer research etc.... i.e. leaving him free to concentrate on providing the consultancy service which will bring the money in!
My fiance needs my efforts full-time at the moment as we're at the beginning of a new venture but as time goes on he may not need so much of my time. Before being made redundant I worked as a manager in a Finance department and although I am pretty comfortable with bookkeeping, I worked for a US owned company and tended to get involved in other areas of finance. I am considering studying for some bookkeeping qualifications. If I become less involved in my fiance's business once he is more established then I may want to use my bookkeeping qualifications to take on my own clients.
My fiance should comfortably exceed the higher tax rate bracket and I will expect reasonable remuneration for my efforts. At a guess, if I only work for my fiance this tax year, on a full-time basis, I would like to think I could justify earning approx £20-£25k (which is half the salary I was earning in my previous job). All going well, I would hope he would earn at least 4-5 times more than me...hopefully!
I need to register my fiance as self-employed with HMRC. What is my status? Should I be employed by him? I assume this will mean he will have to pay 12.8% Employer's NI due to the salary I will be earning? Or can I be treated as a partner and therefore also register as self-employed?
On a side note, if I do set-up my bookkeeping service then I will probably trade under a different name to my fiance as his trading name is pretty specific to the service he offers.
I'd really appreciate any advice.
