Using Partners Allowance

hadenoughnow

Sorry for the long winded post, but here goes: 

I am self employed and also work full time PAYE. My SA earnings have gone a lot more than i imagined they would when i started this, my PAYE salary is 32k and coupled with my SA earnings im looking at higher tax bracket. 

My Partner earns 10K a year less than me PAYE, so could I put the business in her name and her be liable for the tax as it would fall under the threshold. I would still be one doing the work but invoices coming from her so to speak. Also if we did this, does the bank account that the funds are paid into need to be in her name, or could i still use the same account i have been using (solely in my name) as its a pain to let all the clients know of the changes. 

Many Thanks 

Jeremy535897

You could consider making her a partner (changing your sole trade to a partnership). Then you can divide profits in whatever proportions you want, no matter who does the work.

Your wife and your suppliers/customers should be made aware, and it would be better for the bank account to be joint. Your wife would also have liability if something went wrong in the business.

marlot

Congratulations on being so successful.

You can reduce your earnings/tax by paying into a pension.

It may be time to look at setting up as a limited company.