Alan Pink considers the rival attractions of the limited company and partnership structures for husband and wife (or civil partner) businesses from a tax perspective.
The decision on how to structure a business can make a huge difference to the amount of tax the business, and the individuals making up that business (e.g. spouses or civil partners), pay each year to HMRC.
What follows is intended to be a kind of ‘toolkit’ for making this decision. It’s important to remember that not all circumstances are the same, and it’s often a question of weighing up the ‘pros’ and ‘cons’ of partnerships and limited companies.
Vive la difference!
The first point to make is that there is a