Re: Add expenses to the mix...
Again, you're conflating evasion and avoidance. Avoidance is not paying taxes that you do not owe.
The partner in question is certainly doing work for the company and drawing a salary as a result of that.
My wife did work for my company when I was a full-time contractor. Mostly filing, for which I paid her a wage. She and my company paid NI and tax on that wage appropriate to the wage earned, no more, with an appropriate tax code to avoid paying tax that she didn't owe.