Yes you can.
- You could pay yourselves equal amounts to minimise the risk of Higher Rate Tax to one of you.
- Only one set of accounts will need to be prepared each year, rather than two, saving on accountancy fees.
- If either of you are in the Flat Rate VAT scheme, your combined income could exceed the Flat Rate VAT threshold, excluding you from the scheme. But since April 2017, and Philip Hammond’s attack on the Flat Rate Scheme, this is much less of an issue.
- If you are both in different industries, HMRC will need separate accounts for each trade, so you should ensure that your bookkeeping records are separate.
- Also, it is not advisable to do this with a friend because your bank accounts would be entangled and both your assets would be in danger if one of you got into difficulties.