Husband has a sole trade which has been going for a year and a half now (since around 6 April 2018) making profits in excess of his personal tax allowance.
He is now desperate to get his tax bill as low as possible, especially since he has so far spent all of his profits and 2018/19 has come and gone without him making any legitimate attempt to reduce his 2018/19 tax bill (I.e. by using his wife's unused personal allowance and Class 4 exemption).
His wife has had low earnings from her own ongoing self employment, but from April 2019 his wife started working (unpaid) for husband's sole trade as well as carrying on her own meagre self employment.
I suggested that since they genuinely work together on the husband's sole trade that he should think of making her a partner, which is probably the easiest/cheapest way to get profits over to her.
The other alterative is to pay his wife a wage below the relevant NIC threshold, but the fact she has already got her own self employment seems to mean that he would have to open a PAYE scheme irrespective of how little wage he pays her.
I am tempted to encourage forming a husband-wife partnership without a formal partnership agreement, because that seems to be the most flexible and cheapest way to move forward.
But I then asked husband if he is likely to be sued. He said it looks like he may have two actions against him for "bad work" during the last year and a half.
My question is, if he were to take his wife on as a partner half way through this 2019/20 tax year, say on 6 October 2019 (i.e. today), is there any way the wife could be sued for his past bad work.
In any event, they both have no real assets. The house is mortgaged up to the hilt.