I have been approched by a new client, husband and wife, husband is a self employed taxi driver earning £20k, wife is self employed cleaner earning £5k.
Previous firm of Accountants have set up partnership and included all income and expenses as one trade so they are each assessed on £12.5k.
Surlely this is wrong and part of settlements legislation ? They are adamant the Accountants assured them it was fine to do this.
I would advise 2 self employment returns and a marriage allowance transfer.
Am I missing something? Are they allowed to do this?