I work full time, I also work freelance. My fiance is a self employed designer. Because of the obvious overlap in skills, we usually end up sharing the workload on most projects. However, because I'm PAYE as well as self employed, I pay tax on everything I earn from freelance whilst my fiance doesn't make anywhere near her personal allowance. This last financial year has been such that after expenses her personal allowance could have absorbed my entire years freelance income! It seems silly that for the main part, we both work on projects together yet anything that goes through my books attracts tax whilst it wouldn't if it went through hers. One thought I'd had was to simply put 50% of everything through her accounts as both businesses use the same 2 bank accounts, (possibly get her to invoice me for that amount) but I figured that essentially invoicing yourself to reduce tax liability may well be classed as tax evasion? So the only other way I can see of better using her tax allowance would be to become a partnership. Ive been told that on this scale there's no legal documentation required but I cant seem to find any info on the ins and outs of partnerships or the added complexities come year end. Has anyone entered into a partnership? how does book keeping differ from sole trader? Am I just over complicating things and is it ok for her to simply invoice me for 50% of the work?