Sole Trader Hiring Family Question

Lynnie2000

I am a sole trader (copywriter/social media manager) and I am looking into hiring my partner. Would it be better to take him on as a freelancer (is this allowed as we live together?) so he pays tax etc, employing him and doing the paye, N.I stuff myself or bringing him in as a partner(wouldn't be able to put his wages as a business expense then I am guessing).

We are not turning over a lot but I will need to take him on as our clients grow.

Any advice would be welcomed.

Owain_Moneysaver

Self-employed freelancer unlikely to be allowed.
If you make him a partner then he has 50% rights to the assets and goodwill of the business - even if you split up personally.

So make him an employee. But workers who participate in the running of your family business, so long as they are members of your family and live in your home. are not subject to the National Minimum Wage.

InsideInsurance

You can have a partnership agreement drawn up to deal with issues such as disagreements on business matters or if you split up personally.

An employee may be the easiest thing to do

Savvy_Sue

And general advice (from those who know, which I don't) is that if you create a partnership it should not be equal. One of you needs to have the casting vote! and you need this in place while everything in the garden is still loverly, rather than when it has all gone pear-shaped, you aren't speaking to each other, and will commit murder before you allow him to do what he is suggesting because it is clearly insane.