Sole trader into Partnership

Saitama1988

Hi! 👋 Just wondering, if my wife and I are both sole traders and would like to join into a partnership, what would need to be done apart from creating a new business? 🧐 I was trying to find some advice online on the gov.uk site, but only found that we need to create a new business as a partnership and carry on normally, with the difference that at the end of the tax year, we'll have to do three tax returns (one for each of us and one for the total both as nominated person). 📝 Appreciate any help with it! 🙏 

Dazed_and_C0nfused

Saitama1988 said:

Hi! 👋 Just wondering, if my wife and I are both sole traders and would like to join into a partnership, what would need to be done apart from creating a new business? 🧐 I was trying to find some advice online on the gov.uk site, but only found that we need to create a new business as a partnership and carry on normally, with the difference that at the end of the tax year, we'll have to do three tax returns (one for each of us and one for the total both as nominated person). 📝 Appreciate any help with it! 🙏 

It isn't clear if you will end up with one, two or three ongoing businesses?

Will you both be continuing your own sole trading ventures AND starting a new business, (as a partnership)?

Or does this this new partnership replace one or both of the existing sole trading ventures?

Saitama1988

basically we planing joint together so partnership should replace both our existing sole trading ventures.

mybestattempt

Saitama1988 said:

basically we planing joint together so partnership should replace both our existing sole trading ventures.

The respective sole trades would need to be the same type of business to form a partnership as you and your wife would need to be carrying on a business in common with a view to profit.

If the sole trading ventures undertake different business activities and you and your wife are or become involved in carrying on both businesses together then there would be two partnerships.

martindow

mybestattempt said:

Saitama1988 said:

basically we planing joint together so partnership should replace both our existing sole trading ventures.

The respective sole trades would need to be the same type of business to form a partnership as you and your wife would need to be carrying on a business in common with a view to profit.

If the sole trading ventures undertake different business activities and you and your wife are or become involved in carrying on both businesses together then there would be two partnerships.

I'm not sure that is correct as a partnership can sell more than one thing, can't it?  If the husband sells shoes and the wife sells paperclips, couldn't they not form a partnership selling shoes and paperclips?

MeteredOut

martindow said:

mybestattempt said:

Saitama1988 said:

basically we planing joint together so partnership should replace both our existing sole trading ventures.

The respective sole trades would need to be the same type of business to form a partnership as you and your wife would need to be carrying on a business in common with a view to profit.

If the sole trading ventures undertake different business activities and you and your wife are or become involved in carrying on both businesses together then there would be two partnerships.

I'm not sure that is correct as a partnership can sell more than one thing, can't it?  If the husband sells shoes and the wife sells paperclips, couldn't they not form a partnership selling shoes and paperclips?

That's not the best example as both are selling and clearly a single business can sell more than one thing.

A better for example would be one person selling shoes but the other repairing cars. That would not be allowed under a single partnership.