Limited Liability Partnership

Limited Liability Partnership

Didn't find your answer?

In the first year of trading the two member LLP made a substantial loss and members took no drawings.
In the second year to 31/05/2007 the LLP made a profit which exceeded the 1st years loss but the members drawings were substantially in excess of not only the profit for the year but the profit less the loss brought forward.

Are the excess drawings to be shown as loan debtors to the members in the balance sheet and if so what are the implications if any from a statutory and/or tax point of view?

With regards to the profit for the year to 31/05/2007 (less presumably the loss brought forward) are the members taxed in 2007/08 on this net amount without reference to the excess drawings taken?

Many thanks for any advice you may have.

Peter

Peter Reader

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.