Partnership Tax Query
MaggieL
Registered Posts: 9 New contributor 🐸
Hi Guys, this is my first time on here so hello everybody and please accept my apologies in advance for asking the first of many 'silly' questions that I'm sure that I should know the answer to.
I have partnership which is split 95% (partner 1) /5% (partner 2) but the work is carried out just about equally. The drawings are similar £14k (P1) and £13k (P2) approx. The profit (before drawings) is £24k approx. So, the drawings/current accounts have £14k and £13k debit - £22,800 and £1,200 credit. My query is, does partner 1 pay tax on £22,800 or can I split the tax liability (say, in the same ratio as the drawings). It just seems crazy that P1 has received £13k and has an amount liable to tax of £1,200.
I have partnership which is split 95% (partner 1) /5% (partner 2) but the work is carried out just about equally. The drawings are similar £14k (P1) and £13k (P2) approx. The profit (before drawings) is £24k approx. So, the drawings/current accounts have £14k and £13k debit - £22,800 and £1,200 credit. My query is, does partner 1 pay tax on £22,800 or can I split the tax liability (say, in the same ratio as the drawings). It just seems crazy that P1 has received £13k and has an amount liable to tax of £1,200.
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