Business/accounatncy advice

[AWF90]

I am looking at setting up a small business with a friend, estimated to be well under VAT threshold turnover. We both have full time jobs (basic rate taxpayers) which we will continue to do.

What would be the best way of doing this tax wise? A simple partnership imo but a second opinion would be handy! Set up a business bank account, put capital in there and pay for everything with that?

[Countdown]

AWF90 said:

I am looking at setting up a small business with a friend, estimated to be well under VAT threshold turnover. We both have full time jobs (basic rate taxpayers) which we will continue to do.

What would be the best way of doing this tax wise? A simple partnership imo but a second opinion would be handy! Set up a business bank account, put capital in there and pay for everything with that?

I think that's two separate issues to be honest.

A BBA is a good idea as it will keep things simple from an accounting point of view, but has no impact on tax.

Tax is more likely to be affected by whether you set up as a partnership or as a Ltd Co. There are other pro's and cons to both structures. Eric Mc is the person who knows a lot about this.

[AWF90]

Thanks for the quick reply - that pretty much answers my question.