Interested In Advertising? | Contact Us Here
Warning!

 

Welcome to Clean It Up; the UK`s largest cleaning forum with over 34,000 members

 

Please login or register to post and reply to topics.      

 

Forgot your password? Click here

Pure Glass

  • Posts: 384
Partnership tax question
« on: July 17, 2012, 11:00:56 pm »
Just a quickie - nowt to do with windows specifically but.....

Out of interest, if youre business is a partnership, how much roughly of your turnover do you put aside for tax per month in %?

Ta, Steve

mgba_78

  • Posts: 437
Re: Partnership tax question
« Reply #1 on: July 18, 2012, 07:27:11 am »
Depends how much you want to find when its due?? Obviously the more you save now till January the less you have to pay in 1 lump sum.

We dont put any away, we just do return then pay the tax individually out of our own accounts.



Oooooo that is shiny!!

Carl2009

  • Posts: 806
Re: Partnership tax question New
« Reply #2 on: July 18, 2012, 09:09:42 am »
This is what you need to do and assumes you are familiar with Excel and formulas:

1. Prepare a monthly cashflow for the next 3 years. A simple Excel document that shows what your expected revenue and business expenses are likely to be for each month,with a Total for the year in the last column. If your business is more than a few months old this will be relatively easy. I assume a 7.5% increase in revenue every other year as i don't put my prices up annually. 1 year to 1 worksheet.

2. To each year of the above the above link a simple profit and loss account. Ensure that each cell in the P and L account relates to the Total figure in the cashflow, so when the figures in the cashflow doc are updated each month the P and l self-updates too.

3. Your partnership agreement should state how profits are to be divided - 50/50, 60/40. Using the  P and L you'll be able to see how much net profit you are making. In the P and L spreadsheet you need to a) divide the profit between you and the other partner, b) deduct the personal allowance valid for the year in question for each partner c) use a formula to calculate the tax and NI due.

Doing this and you'll have the amount you need to put away - generally 30% of net profit for tax and NI. Mine does not take into account depreciation of capital assets so I am always putting away more than I need. When I work mine out this way I am generally only a few quid out from what the Accountant comes up with.