Two Artist Sole Traders Forming a Partnership?

[Foresty_Forest]

My wife and I are both creative makers and sole traders. We are making the same product (oil paintings)- just different subject matter. We both sell over the internet and in physical galleries. Our costs are always crossing over - such as car journey deliveries, materials, framing Etc. And I effectively work as my wife's technician (framing her work Etc.)

It would make accounting simpler if we formed a partnership. Would this be ok with the IR?

Are there any rules to be aware of when forming a partnership?

Could we divide profits in whatever ratio we liked?

Thanks

 

[Scalloway]

You can form a partnership just by dclaring you are one. However you would be far better off getting a solicitor to draw up a formal agreement covering any contentious matters.

Yes you can split profits in any ratio you want.

 

[WaveJumper]

Take the @Scalloway advice on getting proper legal advice on drawing up any agreements the forum is full of posters who wish they had.

 

[Foresty_Forest]

Can the partnership be declared with the IR anytime this tax year?

Can we declare the partnership and work out formalities thereafter?

 

[SteveHa]

Creative industries have their own rules for taxation (in common with farming), particularly around averaging. You should almost certainly seek accountancy advice.

 

[Scalloway]

Can the partnership be declared with the IR anytime this tax year?

Can we declare the partnership and work out formalities thereafter?

Registering a partnership with HMRC.

https://www.gov.uk/set-up-business-partnership/register-partnership-with-hmrc

You can decalre a partnership whenever you want but I would strongly urge getting the partnership agreement set up as soon as possible.

 

[The Byre]

Simple question - what is more stable, the business or the marriage?