Partnership profit split
JodieR
Registered Posts: 996 Beyond epic contributor 🧙♂️
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
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
0
Comments
-
Good luck trying to prove the point to 'Ftax'; it can't be done! ITTOIA 2005 s.850.0
-
Oh how annoying! thanks for the link though!0