Partner wants to invoice Partnership for services-Is this allowable

Antoinnette
Antoinnette Registered Posts: 118 ? ? ?
I am doing the returns for a partnership and one of the partners is also a self employed PR freelancer. Part of her role in the partnership is doing the PR for the partnership's clients. She wants to invoice the partnership for PR she has done for the partnership itself but not the clients. Is this allowable?
Thanks

Comments

  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    Is the partner set up in business in their own right? If so and the charges are sensible and viable, then it sounds ok to me.
  • Antoinnette
    Antoinnette Registered Posts: 118 ? ? ?
    Thanks for the quick reply. Yes the partner is self employed and does PR on a freelance basis. I guess in the long run she would still pay tax on it through self assessment so in a round about sort of way it works. I was slightly confused in the beginning because I see the partners as self employed pooling their skills together so one partner invoicing the group felt a bit like invoicing yourself for services your own skills if you see what I mean
    However, they are thinking of incorporating in Feb which I guess will make it easier to put it through as they are then separate entities from the business.
  • JodieR
    JodieR Registered Posts: 1,002
    This came up before and I think that the answer was that that the work that the sole trader did for the partnership had to be of a different nature to the services offered by the partnership. I think the example used was one partner billing the partnership (Cafe?) for running the payroll through their S/T business would be acceptable. Don't quote me on that though! I seem to remember it was one of the Deans who wrote a good reply, might be worth searching the forum for it.
Privacy Policy