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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am in business partnership. My PAYE income is 40% taxable,

Resolved Question:

I am in business partnership. My PAYE income is 40% taxable, my partners 20%. How do I calculate tax ?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
.

How long has the business partnership been trading? Have you registered the partnership, yourself and your partner -assessment? Can you confirm that you do not trade through a limited company?
Customer: replied 2 years ago.
,
1. Only 2 months
2. Yes I have
3. I do not trade through limited company
If I pay tax through partnership, will I have to pay it through Self assessment as well on my share? I mean do I have to do tax return twice?
Thanks
Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 2 years ago.

again.

If you have only been in business months, then your first partnership tax return will be 2014/15 tax year which ends on 5 April 2015. I would suggest you run your first accounts to 31 March 2015 or 5 April 2015 to keep things simple and to ensure that you aren't taxed twice on some of the first year's profits.

When you draw income from the partnership, you don't pay tax on that. The partnership itself doesn't pay tax or national insurance contributions. You disclose the accounts figures in the partnership tax return (see the 2014 partnership tax return here), divide the profits between the partners and each partner discloses their share of the partnership profit (not drawings) in their own tax returns in the partnership pages (see the 2014 pages under the heading Supplementary pages here). Each partner then pays tax on their share of the profit and on any other income they may have through their self-assessment tax return.

I hope this helps but let me know if you have any further questions.

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