[ascjim]

Hi all, i need of a little advise.

How much money would i need to hold back for Tax on the money in my business partnership profits?

Still 20% like your own?

thanks for any advise.

[andyatkinson]

my understanding is its double as you say, double the tax threshold before you pay tax and then 2 seperate people partners both earning their income through the same company

[Pope vader]

http://www.hmrc.gov.uk/sa/parts-partners.htm

[ascjim]

http://www.hmrc.gov.uk/sa/parts-partners.htm

Have already looked there, it doesn't actually say

[Pope vader]

is it a 50/50 partnership,  if so, then you have to fill in 3 tax returns,  1 for the business and 1 each for the partners   the partners will pay tax at there own rate and what is left in the business you will pay tax on as well at corporation tax rate,  i think

speak to your accountant,

[herbiefatboy]

does any one know if one of the partners can be on less money than the other ie if it your son joined the bussiness,

[Pope vader]

yes the partnership can be 25/75  or 60/40  etc

[simbag]

Yep, can confirm, in my partnership we are split 2/3 - 1/3 or 67% - 33%

And as far as the tax goes, your tax is still worked out the same way as sole trader. Ie profits split between partners in the agreed share, and the tax is calculated on that share.

Corporation tax does not apply until you become a Limited company.

[SunShineCleaning]

You still have to fill out a partnership form.

[Justen Uff]

Yep, can confirm, in my partnership we are split 2/3 - 1/3 or 67% - 33%

And as far as the tax goes, your tax is still worked out the same way as sole trader. Ie profits split between partners in the agreed share, and the tax is calculated on that share.

Corporation tax does not apply until you become a Limited company.

Exactly that

[simbag]

You still have to fill out a partnership form.

Yes you do. Depends if you are doing it yourself I guess. Our accountant deals with all that. So no extra work for us!