Partnership
A way of trading with other like minded individuals, to record the business as a whole but be taxed as individuals.
What is it?
The business venture needs to be recorded with HMRC, even if it isn't a Limited Liability Partnership registered at Companies House.
The business is accounted for as a single unit.
The individuals agree on a proportion for the parnterhip to be split between them - which should be formally recorded.
The profits of the business are then apportioned to each individual at the end of the financial year.
What You Need to Do
The bookkeeping and accounts of the partnership need to be recorded as any business, however, the partnerhip itself is reported on a partnership return to HMRC and this records the amounts attributable to the individuals.
The individuals then add this profit share to their tax returns to report to HMRC and pay the relevant tax on the profits at their individual marginal tax rates.