What to do about the Mrs!

KaelaH

We have a friend who has started writing books, initially it started off really small, earning a few pence a week. He mainly sells electronic books for kindle etc for around 99p each.
Anyway, since the run up to Christmas the sales have gone mad and they're making a fair amount of money per month.
He is employed and pays higher rate tax in that employment and, in effect, he only writes the books.
His wife is not employed anywhere, is at home with the kids, and she deals with all the promotional sides of the books and handling of money etc.

So far he had reg'd self employed but he's wondering about the best way to go forward, particularly the best way to take earnings.
Do they: 1. Set up as a partnership?
2. He remain a sole trader and employ his wife?
3. Set up limited company?
Any help would be appreciated

Monsoon

How about: she is self employed. Her jOb is an e- publisher. He writes the content because he loves her. Or a partnership with her taking 99%.

Unless its making £20k profit or thereabouts a ltd probably isn't necessary.

I'm not awake and the first suggestion was slightly tongue in cheek (but no a joke either).

deanshepherd

Very interesting.

What sort of books is he writing?

PAMDILL

deanshepherd wrote: »

Very interesting.

What sort of books is he writing?

I was going to ask that earlier but thought I was just being nosey.

T.C.

Going back to the first question, if his wife does not work and is 'helping within the business', why not go for a simple partnership?

KaelaH

He writes teen fiction.
As for the accounting, I was thinking about a partnership too but have little experience with them so thought I'd better check before giving him advice.