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Registering as Sole/trader reducing tax

I'm in receipt of state and work pension and over personal allowance. My partner is in receipt of work pension below personal allowance. I've recently started buying raw materials and making finished products to sell to friends etc. My partner receives the sale income currently less than £1000 a year but transfers that money to me ( spouse).
Is that tax avoidance or evasion? The sales are expected to be around £2k a year soon so can we carry on with her having <£1k sales and me <£1k sales with no tax liability assuming the transfer between spouses is avoidance and no need to register as a sole trader?
When my partner reaches state pension age she will be over personal threshold so not much point in her registering as the sole trader  if sales go above £1k/£2k

Comments

  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    This isn't making sense to me. If you are not registered as a sole trader then you are unable to set your legitimate business expenses against your sales income. 
    How much is your net profit after buying materials and other overheads?

    No free lunch, and no free laptop ;)
  • AFAIK you can sell £1k without registering as a sole trader which is what I've done to date. I think my partner(spouse) and I can sell up to £2k without registering as a sole trader. If above £2k sales then I'd  register and take into account materials and other overheads which would be around 30% of sales. So if sales were £3k less £900 expenses I'd be taxed on £2.1k as all my allowance is taken up by my pensions. 
  • Jeremy535897
    Jeremy535897 Posts: 10,813 Forumite
    10,000 Posts Sixth Anniversary Photogenic Name Dropper
    There is one business, and you do it. I cannot see how you could each do £1,000 in sales. If there is a long term future for it, have a husband and wife partnership. There is nothing wrong with you doing all the work yet allocating even 90% of the profit to your wife. Partners are jointly and severally liable for partnership debts, remember.
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