2 sole traders - do we need to be a company?

[foxfire]

jeepers firefox, you're a genius! why didn't i think of that? i know we would be better off formalising our partnership once we see a definite future, but that would be something simple we could do right now.

i knew the cro did not check uniqueness of registered business names, but i thought i better not duplicate someone else's. so i guess i never thought of duplicating my one. that's great. thanks firefox and ged

Thanks Fizzy. Alas I am far from being a genius.

I'm interested in the comments that the others have made regarding this arrangement. It's what I've done and was advised to do by my accountant.

As long as all your invoicing is above aboard I don't see the problem. There is absolutely nothing underhand about it whatsoever, and because a Registered Business Name is easily searched on the CRO website anybody can find out your details.

Essentially you run your business as a sole trader and your boyfriend does too. Two separate bank accounts, 2 separate VAT reg numbers etc and just invoice each other as required. The Revenue gets exactly the same amount of money - there are no savings being made in that sense unless I'm missing something.

It's just one sole trader subcontacting another.

 

[ubiquitous]

I'm interested in the comments that the others have made regarding this arrangement. It's what I've done and was advised to do by my accountant.

What? Run 2 businesses from the same address using identical business names but headed by different people?

As long as all your invoicing is above aboard I don't see the problem. There is absolutely nothing underhand about it whatsoever, ....The Revenue gets exactly the same amount of money - there are no savings being made in that sense

The problem with Revenue is the negative perception with which they would monitor such an arrangement, and the increased risk of audits and investigations. Even where paperwork and tax compliance are 100% in order, nobody relishes the prospect of having Revenue inspectors peering into their affairs on an ongoing basis. Its simply not worth the stress and uncertainty.