Hello
What would I need to do for somebody that is ending a partnership to go as a sole trader again? The partnership is currently vat registered and cis registered. And is finishing it's last job.
My client is now starting some of his self employed work alongside the partnership.
I realise he needs to register for cis and he's opening a separate business account (at the moment his self employed payments are going into his personal account not the partnerships), but how does it work with him invoicing his self employed work? Does he need to charge vat as he is still involved with the partnership or can he leave vat until he needs to register?
Also when the partnership is finally ceased (should be very soon) and he gets his half of whatever's left will this be put into his sole trader as capital or just as drawing introduced? And then he pays the tax on it on his 17/18 return or will the tax be paid on the partnership 17/18 return?
Many Thanks
What would I need to do for somebody that is ending a partnership to go as a sole trader again? The partnership is currently vat registered and cis registered. And is finishing it's last job.
My client is now starting some of his self employed work alongside the partnership.
I realise he needs to register for cis and he's opening a separate business account (at the moment his self employed payments are going into his personal account not the partnerships), but how does it work with him invoicing his self employed work? Does he need to charge vat as he is still involved with the partnership or can he leave vat until he needs to register?
Also when the partnership is finally ceased (should be very soon) and he gets his half of whatever's left will this be put into his sole trader as capital or just as drawing introduced? And then he pays the tax on it on his 17/18 return or will the tax be paid on the partnership 17/18 return?
Many Thanks