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Sole trader to partnership business


klc106
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Hi all

I currently run my pre-school as a sole trader and employ one other person. I am also the registered person for ofsted.

Due to financial reasons, I am thinking of changing from sole trader to a partnership with the lady I employ.

Has anyone else done this and knows what is involved? Do I have to tell ofsted or would I remain the registered person?

The hardest part to work out is the fact that I started up the pre-school with my own money and have kept it going for the 3yrs we have been open and not seen much in return.

It is like I am just giving half of my business away for nothing!

Sorry for all the questions. I am just confused as to what to do! :blink:

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Goodness well we changed from sole trader to partnership a while ago without realising we would have to completely re register! We then did realise so told ofsted and they directed us to online application thing (wish I never realised!) We were both already known to ofsted and had all the fit person interviews in the past but that was irrelevant apparently! Did DBS check each (£112) did health check each (£48) and did ey2 each and submitted my ey0. Then had an issue as we were applying for non domestic (what we are now and have been since 1997) but they said we should be domestic as in a large house (nursery rooms totally separate) So basically I phoned about four weeks ago to clarify - no one knows what we should be and someone is getting back to us - still waiting!!! I don't want to be domestic as will cost way more money and seen as we have had 4 inspections you would think they would notice if we were the wrong thing!! You lose your previous inspections and it is a complete new registration, to be honest if we had known that this would be the case we probably wouldn't have done it!!! I cannot possibly see why it needs to be a new registration and I don't actually know how ofsted would know it was a partnership or sole trader without fishing around We did it purely for financial reasons - nothing within the nursery changed so it makes me mad!!!! Think long and hard would be my advice!!!!

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I had no idea that this could be an issue for Ofsted or in fact anything to do with them

! I thought it was more to do with finances/ tax etc. so ....what do I know!

Seems like woodlands advice is worth bearing in mind definitely.

Edited by Greenfinch
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Woodlands, was you able to stay open and registered with ofsted whilst the new registration was being done?

Also, how does it change with hmrc? would I cancel my sole trader account and then open a partnership one for the new business?

Thank you

Edited by klc106
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Exactly greenfinch -that's exactly what we thought! we have now been operating for nearly two years as a partnership as didn't realise until 18 months after we had done it that we even needed to tell ofsted!!! We are still open under our old registration number, ofsted assured us there would be no gap in provision and we are waiting for the new registration to resolve so I wouldn't worry on that front. Our accountant did the hmrc stuff but I don't believe that was tricky at all x

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Ofsted can fish for information if needed, and they do.

When we changed from a charity pre-school to an incorporated one with charitable staus, they had looked on companies house and saw we had not listed all directors/trustees even though companies house had advised us previously that we only needed to put down our Chairperson.

We then had to put them all on recently for us to get their DBS clearance.

If you become incorporated their is great advice at the Pre-school Learning Alliance of all relevant procedures.

You will have to notify basically everybody connected with all contracts ie funding, your local Authority, banks, insurance etc.:)

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Our local authority weren't bothered, they said it'll just carry on as normal and we can let them know new number when we have it. Our accountant has sorted all hmrc stuff but we haven't told the bank - can't see why we would need to and she's never said we need to?x

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