Partnership profit split

JodieR
JodieR Registered Posts: 1,002
Partnership makes a profit of say £1000 but Partner A actually works in the business whereas Partner B stayed employed at the start while it built up (and now works for the partnership). This isn't a husband and wife business and partner B invested money in the business and assisted with the set-up.

So, the way I want to spilt the profit (in line with the partnership agreement) is as follows:

Partner A Partner B Total

Salary £5000 £0 £5000
Remaining Profit -£2000 -£2000 -£4000

Total £3000 -£2000 £1000


Therefore Partner A has made a profit and partner B a loss, but when I try fill this in on the Ftax form it brings up an error message and when I queried it with Ftax they think that I can't do what I'm trying to do. I am right aren't I? Does anyone know where I can point Ftax to to prove that this is allowed?

Thanks
Jodie

Comments

  • KernowAccountant
    KernowAccountant Registered Posts: 103 ? ? ?
    Good luck trying to prove the point to 'Ftax'; it can't be done! ITTOIA 2005 s.850.
  • JodieR
    JodieR Registered Posts: 1,002
    Oh how annoying! thanks for the link though!
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