tax on partnership
willywonka1
Posts: 31
Forumite
Hy.
Two in partnership, £40,000 proffit, each partner takes out £20,000, how much tax to pay?
Two in partnership, £40,000 proffit, each partner takes out £10,000, how much tax to pay?
Two in partnership, £40,000 proffit, each partner takes out £0, how much tax to pay?
Merci
Two in partnership, £40,000 proffit, each partner takes out £20,000, how much tax to pay?
Two in partnership, £40,000 proffit, each partner takes out £10,000, how much tax to pay?
Two in partnership, £40,000 proffit, each partner takes out £0, how much tax to pay?
Merci
0
Comments

Do you "take out" profits from a partnership?
I thought it was just total profit ( income less expenses ) divided as per the agreement.
Then you just pay tax as per normal via self assessment.
0 
The tax to pay will depend on each partner's total taxable income for the tax year. Based on what you've written it's impossible to answer.0

willywonka1 said:Hy.
Two in partnership, £40,000 proffit, each partner takes out £20,000, how much tax to pay?
Two in partnership, £40,000 proffit, each partner takes out £10,000, how much tax to pay?
Two in partnership, £40,000 proffit, each partner takes out £0, how much tax to pay?
Merci0 
DullGreyGuy said:willywonka1 said:Hy.
Two in partnership, £40,000 proffit, each partner takes out £20,000, how much tax to pay?
Two in partnership, £40,000 proffit, each partner takes out £10,000, how much tax to pay?
Two in partnership, £40,000 proffit, each partner takes out £0, how much tax to pay?
Merci
Thank you all.
I dont understand this, as in a partnership, we could do 1, 2 and 3. Meaning we have the business account, and,
1,
We could take £20,000 out each, and leave nothing in the account.
2,
We could take £10,000 out each and leave £20,000 in the account.
3,
Take nothing out, and leave the £40,000 in the account.
Merci0 
DE_612183 said:Do you "take out" profits from a partnership?
I thought it was just total profit ( income less expenses ) divided as per the agreement.
Then you just pay tax as per normal via self assessment.
1,
We could take £20,000, drawings/profit out each, and leave nothing in the account.
2,
We could take £10,000, drawings/profit out each and leave £20,000 in the account.
3,
Take nothing out, and leave the £40,000 in the account.
Merci
0 
uknick said:The tax to pay will depend on each partner's total taxable income for the tax year. Based on what you've written it's impossible to answer.uknick said:The tax to pay will depend on each partner's total taxable income for the tax year. Based on what you've written it's impossible to answer.uknick said:The tax to pay will depend on each partner's total taxable income for the tax year. Based on what you've written it's impossible to answer.
Merci0 
willywonka1 said:DE_612183 said:Do you "take out" profits from a partnership?
I thought it was just total profit ( income less expenses ) divided as per the agreement.
Then you just pay tax as per normal via self assessment.
1,
We could take £20,000, drawings/profit out each, and leave nothing in the account.
2,
We could take £10,000, drawings/profit out each and leave £20,000 in the account.
3,
Take nothing out, and leave the £40,000 in the account.
Merci0 
willywonka1 said:DullGreyGuy said:willywonka1 said:Hy.
Two in partnership, £40,000 proffit, each partner takes out £20,000, how much tax to pay?
Two in partnership, £40,000 proffit, each partner takes out £10,000, how much tax to pay?
Two in partnership, £40,000 proffit, each partner takes out £0, how much tax to pay?
Merci
Thank you all.
I dont understand this, as in a partnership, we could do 1, 2 and 3. Meaning we have the business account, and,
1,
We could take £20,000 out each, and leave nothing in the account.
2,
We could take £10,000 out each and leave £20,000 in the account.
3,
Take nothing out, and leave the £40,000 in the account.
Merci1 
Hy,
So, we each have too pay £1486, if all is 50/50?
£12570 x 2 = £25140, take that off £40,000 = £14,860, divide by 2 = £7430  80% = £1486?
Merci0 
Yes, if that's all the taxable income you have.1
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