[Dick]

My wife has just retired and is only receiving state pension which is less than the personal tax free allowance, I was told that a partneship would be good as we could both claim the tax allowance rather than losing part of it. Has anyone formed a partnership with spouse/partner etc if so is it an easy thing to set up?
Thanks

[christopher b]

im not 100% sure but i seem to remember from when I went limited that you could not have a wife as a buisness partner as they allready own 50% of the buisness being married to you.
phone the HMRC they will tell you 0845 915 4515

[SherwoodCleaningSe]

Yes, my wife and I are business partners.  We split the profit 50% each, but you can split it whatever way you want, whichever way reduces the overall tax bill the most.  It's perfectly legal, the only downside is that if you die she has to cover the whole tax bill as she would be a partner.

Only here to cheer you up.
Simon.

[Dick]

Thanks for that cheerful note but it's something to be aware of.
Do you have to have a joint bank account and do you have to inform IR of the partnership?
Thanks

[SherwoodCleaningSe]

Unless things have changed you don't need a joint bank account, but you do need to tell the inland revenue.  All income and expenses for the business goes through the business.  Then you divide the profit up between yourselves at the end of the year, so at the end of the year you have to fill in 3 tax returns, the partnership, hers and yours.

Simon.

[gordonswindows]

Sherwood has it spot on

we are a partnership but it needs a "senior" partner for the taxman so i have 51% she has 49% but it is still an equal split

also being married she splits it down the middle,  all the work to me and the money to her

just joking darling

[mikecam]

My wife has just retired and is only receiving state pension which is less than the personal tax free allowance, I was told that a partneship would be good as we could both claim the tax allowance rather than losing part of it. Has anyone formed a partnership with spouse/partner etc if so is it an easy thing to set up?
Thanks

A lot of answers here more complicated than they need to be. If you are married, and i guess you are as you call her your wife then you are fully entitled to share her unused tax allowance. No need for 'partnerships' or any other complicated bollox. Just ring up HMRC and ask how you go about using x amount of your wifes unused personal allowance for yourself. It is just that straightforward.

[Helen]

My wife has just retired and is only receiving state pension which is less than the personal tax free allowance, I was told that a partneship would be good as we could both claim the tax allowance rather than losing part of it. Has anyone formed a partnership with spouse/partner etc if so is it an easy thing to set up?
Thanks

A lot of answers here more complicated than they need to be. If you are married, and i guess you are as you call her your wife then you are fully entitled to share her unused tax allowance. No need for 'partnerships' or any other complicated bollox. Just ring up HMRC and ask how you go about using x amount of your wifes unused personal allowance for yourself. It is just that straightforward.

You need to check this out as I "think" without looking it up, that to use married person's allowance you had to be married by 2005 and one partner has to born around 1935?
Always best to check out with the people that know