Existing hairdressing salon, partnership recently de registered for vat. They plan to either sell or wind down. Threshold is very unlikely to go above registration threshold.The Wife wants to step down from the partnership and start a café on the ground floor ( salon will be moved to 1st floor) on a self employed, with the husband carrying on the salon on his own.
Thank you in advance.
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2 answers
1. You don't have to inform HMRC of the cessation of the partnership other than in box 3.8 on the partnership tax return. As the husband is continuing the business, you don't have to prepare accounts to cessation - you can continue to prepare accounts to the normal date for the hairdressing business and allocate profits accordingly. You can prepare accounts for the wife's new self-employed cafe business for the period from commencement to 31 March or 5 April and include them on her personal SA tax return.
2. There will be two businesses operated by the husband and wife separately - the turnovers are not aggregated just because the owners are married.