tax and class 4 nat ins

Princess_Coupon

Quick questions I need help with.
If I register a new business as a sole trader can i change it later to a partnership?

As an (equal) partnership if profits are say £15k this would this mean no tax to pay as we both have a £7.5k personal allowance?

Class 4 nat ins is payable on profits over £7,225 so in an (equal) partnership would that be £14,450 before any were due?

TIA

Rockingsurfer

Yes you can become a partnership at a later date.

Essentially what you say about class 4 and tax is correct, unless either partner has another source of income. For instance if one of you had a job and was using your personal allowance in that employment.

Possibly worth looking at the limited company route, more expensive accountancy but you become and employee and as such would find obtianing personal credit (loans/cards etc) easier than a new self employed person. Also should the business fail for any reason as an employee you can get JSA.

RS