Share this content
3

Help regarding partnership.

Didn't find your answer?

Hello,

Currently I have a partnership which is equally divided between myself and one other.

The partner has a joint bank account with his wife and he is trying to explore the possibility of defining her as a sleeping partner with 25% of the partnership - obviously to reduce tax as she currently just earns over 11k. All of this has come about as I’m about to complete 18/19 tax return.

I am highly inexperienced regarding such matters as our operation has been very simplistic and my knowledge stretches just as far as completing a partnership return and two individuals.

Would anyone be so kind to provide me with guidance / direction in tackling this matter? Or any other possible suggestions. 

Thanks

Replies (3)

Please login or register to join the discussion.

avatar
By JoF
27th Aug 2019 23:43

You cannot re-write history so there is nothing more to do for the 2018-2019 period.

Moving forward, given you are part way into the tax year there are a couple of extra issues to consider, which would be best covering off with your Accountant.

But before you do that, you both need to agree if you wish to admit another partner into the business and on what basis. Suggest you also need legal as well as Accountancy advice.

Thanks (0)
RLI
By lionofludesch
28th Aug 2019 08:26

If you don't want her in, she's not in.

She can only be admitted with your agreement.

You need professional advice.

Thanks (0)
Hallerud at Easter
By DJKL
28th Aug 2019 10:30

Do remember, if vat registered, the time limits re advising HMRC re changes in composition of the partnership- so often this gets overlooked.

Thanks (0)
Share this content