Two persons selfemployed under one business name?

H

Hammerhead

Registered User
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13
Hey there,

I'm asking this question on behalf of another to see if this is valid as I believe in some ways he is being shafted.

Long story short, he is in business with his father as a sole trader company. They trade as: Person1 and Person 2 T/A Compnay Name, where both of them are Self Employed. Is this possible?

I was under the impression that one has to be a PAYE employee and that there can only by one as the sole trader?

See, it is the case where because of his skills that he does most of the work. Ok, the father goes and gets the work but in comparison the money flow is in more favour of the father. Yet without the son, there would be no business really. It's not fair but he doesn't know business ethics at all and is going on what his father says.

Neither of them take wages but draw down from the account to pay for things where the father generally draws down more.

I told him that they should have a joint signature on that account and also that they should be paying wages and not drawing as it shouldn't be done, as far as I know, and costs more in tax?

Can anyone tell me the answer please so I can start to help him turn the business around.
 
Hammerhead said:
Hey there,

I'm asking this question on behalf of another to see if this is valid as I believe in some ways he is being shafted.

Long story short, he is in business with his father as a sole trader company. They trade as: Person1 and Person 2 T/A Compnay Name, where both of them are Self Employed. Is this possible?

I was under the impression that one has to be a PAYE employee and that there can only by one as the sole trader?

See, it is the case where because of his skills that he does most of the work. Ok, the father goes and gets the work but in comparison the money flow is in more favour of the father. Yet without the son, there would be no business really. It's not fair but he doesn't know business ethics at all and is going on what his father says.

Neither of them take wages but draw down from the account to pay for things where the father generally draws down more.

I told him that they should have a joint signature on that account and also that they should be paying wages and not drawing as it shouldn't be done, as far as I know, and costs more in tax?

Can anyone tell me the answer please so I can start to help him turn the business around.
Click to expand...

They would be registered as a [broken link removed](trading as) instead of Sole Traders. Both should be taxed as self employed.
 
if they have a company then i think they should both be paye workers of that company.... if his father is taking out away more then i dont think they are maximising their tax credits and maybe his father is paying more tax than him as a result.

If they have a company then they must be doing annual returns and I assume their accountant is advising them how best to pay wages etc... can't just draw money as they see fit
 
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