Partnership or self employed

[michelle nelson]

Hi, My partner is registered as self employed and was running his own plastering business, he is not happy in this industry so we decided to find something we can do together. So he has bought some stock and has secured a market stall spot which we will be doing together, He's not great with admin, ordering etc so I'm doing all that side of things.

I'm not sure what we would need to do in terms of HMRC, as he's already self employed, do I just need to register also or should this be a partnership.

 

[Simply Business]

Hi @michelle nelson, if you're trading under the same name (on the same stall, selling same products etc) it sounds like you're a partnership rather than a pair of sole traders?

Bare in mind that your partner may need to inform his insurer to changes in his business set-up

 

[Bruno Domingues]

You could consider doing a Limited Company and each one get 50% of the shares.

That will protect you both from liability and I think you are taken a lot more serious if you have a company than being just a sole trader.

As for both needing to be self-employed, depends on how you want to do things. Only one needs to be self-employed as it is all down to invoicing. Will you both invoice the clients separately or will just one of you invoice the clients? Will each of you have your own clients or will be it clients of the "business". Keep in mind that by law you can't use only a business name if you're self-employed. You need to include your own name when invoicing or presenting your business.

Like: Business Name - Michelle Nelson
or: Business Name - Your Partner Name

This is required for transparency purposes. Trading Standards rules. ;-)

 

[Bob]

Regrettably yet more advice from @Bruno Domingues that should be ignored. OP is talking about a market stall - not a business with clients who need invoices. Subject to personal circumstances, it is almost certain that a partnership will be the easiest trading format. Simple to start and easy to stop if it doesn't work. OP will need to register for Self assessment and will need to register the partnership with HMRC.

 

[sirearl]

As above keep it simple and see how it goes.good luck.

 

[DontAsk]

Will you both invoice the clients separately or will just one of you invoice the clients? Will each of you have your own clients or will be it clients of the "business".

Invoices? Clients? This is a market stall we are talking about.

 

[Bruno Domingues]

My apologies, was late at night when I replied, missed the market stall part.

Cheers!