TAX WARNING: Husband and wife business partnerships

[Frostie]

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Just read this on the BBC;
http://news.bbc.co.uk/1/hi/business/6721575.stm

[hrbs]

Hi

A summary of the case thus far is at http://www.accountingweb.co.uk/cgi-b...&h=1019&f=1026 .
Updates will be posted there as it is an extremely important and high profile case.

Keith
HRBS Limited
Small Business Specialists

hrbsonline.com - the online accounting solution

[tomj]

OK thats intreresting but seriously.......

The idea of starting a business with your future EX seems like a really bad idea to me regardless of the tax nightmare you may encounter.....call me a cynic

[Darren M]

This case has been going for ages, but IMO this is more of a threat for IT contractors. If you're the fee earner and out on a customer's site 5 days a week you'll have a hard job proving that your spouse is doing as much work for the company as you are. This was a concern for me a few months ago, but now as an affiliate working from home my situation is different. As my business is home based, my wife can do as much work for the company as I do.

[sgpratley]

How are they going to prove that one? If the partner's not employed full time, how do they know whether they are a 'proper' employee or partner?

I get the principle, but they're doing a great job of pulling any incentive for anyone to start genuine family business.

[essdeekay]

This country won't stop until they bleed every last penny out of your pocket.

Grrrrr.

:-(

Si