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Second Income - Minimising Tax

hi - I posted here ages ago but can't seem to find the thread anymore... in his free time my other half has set up his own business online selling software he developed. Income this year will be about 23k - 26k, next year about 10k, then that's it for about 18 months as everyone who wants version 1 it will have it. We need a bit of advice on how to minimise tax as this will form the deposit for children and ours first home - his usual salary is 27k, mine this year is 17k (had maternity leave), rising to 24k next year (maybe more - am newly self employed). Any suggestions? Someone suggested setting up as a business, but how much tax would we therefore pay? Need an idea of what will be left over for us once the govt has taken a share. Thanks in advance!
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