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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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.
What does your partnership agreement say? - (tongue firmly in cheek -probably not got an agreement)
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-
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).
Maybe have a look at the forthcoming Budget. There was some oblique comment about partnerships in the Autumn Statement.