What is the profit split for my partnership

My accountant has asked me What is the profit split? My wife and I have a partnership

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My wife and I have set up a partnership. We work together to create animated whiteboard style videos.
Even though I draw most of the illustrations she is very involved in planning, layout, script work, etc

Is it therefore possible for us to say we have a 50/50 profit split? Or am I simplifying things too much.

Many thanks

RussLaw

 

 

Replies (8)

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By possep
20th Jan 2017 09:31

Discuss this with your accountant

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By Tim Vane
20th Jan 2017 09:34

I think you should give 100% to your wife because then she can afford to take me somewhere nice for a meal while you are off drawing something.

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By bernard michael
20th Jan 2017 09:44

What does your partnership agreement say? - (tongue firmly in cheek -probably not got an agreement)

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By peter51pjr
20th Jan 2017 09:44

if your accountant has asked this question- then really i would think about changing accountants- so someone who is pro-active and can chat through things with you. Cant understand why they would ask this question direct-

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By Ruddles
20th Jan 2017 09:49

Assuming that there is no formal partnership agreement that dictates a specified allocation, you can split the profits as you see fit. But your accountant ought to be advising you on the most efficient split (which isn't necessarily the most tax-efficient although that would normally be the starting point).

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By In a Daze
20th Jan 2017 10:08

I agree your accountant should discuss the various options with you.

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RLI
By lionofludesch
20th Jan 2017 12:26

Maybe have a look at the forthcoming Budget. There was some oblique comment about partnerships in the Autumn Statement.

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By Russlaw
20th Jan 2017 12:33

thanks for the comments.

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