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business parnership
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hi, my partner n i set up a business in sept. im ment to be doing the accounts but he wont let me get involved. were ment to be 50 50 in this n i have got to prove to tax man thatbi am doing this. he says i can get into trouble 4 not doing this, n stitched me up to use my bank. what can i do about this? any help or advice would be good thanx
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I think I understand what you are saying, but don't get why you have to prove to the tax authorities gthat you are doing the accounts, and what trouble you can get into if he won't let you do them.
Looking at what you say it sounds like some partnership - check what paperwork you have on ending it,see a solicitor and get out quick before it really goes wrong.
Looking at what you say it sounds like some partnership - check what paperwork you have on ending it,see a solicitor and get out quick before it really goes wrong.
Partnerships can be pretty loose arrangements - if you drew up a patnership agreement get the copy out and read it. I suspect you didn't do this.
I also don't understand the taxman bit. Partners are self-employed as far as the taxman is concerned and there is not obligation that one partner does this or that specifically. You both take drawings from the partnership account (usually 50/50 but doesn't have to be) then declare those earnings on your own self-employed tax return.
If a partner was excluding me from seeing the accounts or taking a 50% role in the business admin, I'd be pretty suspicious.
And what's the bit about 'using your bank'? - maybe all he wanted (in taking you as a partner) was your relationship with your bank to guarantee acceptance of a business account.
I also don't understand the taxman bit. Partners are self-employed as far as the taxman is concerned and there is not obligation that one partner does this or that specifically. You both take drawings from the partnership account (usually 50/50 but doesn't have to be) then declare those earnings on your own self-employed tax return.
If a partner was excluding me from seeing the accounts or taking a 50% role in the business admin, I'd be pretty suspicious.
And what's the bit about 'using your bank'? - maybe all he wanted (in taking you as a partner) was your relationship with your bank to guarantee acceptance of a business account.
seek legal advice a.s.a.p. , i found out the hardway, cost me a fortune, vat / tax etc,etc...the phrase that still rings in my ears ' equally and severally liable ',you are both liable for all the debts, not just 50% !!
ie if the other partner racks up debts that are part of the business, even if you dont know about them, and he vanishes or has no assets, the creditors will come to you for the full amount. I got hit with a �2,500 advertising bill that i knew nothing about and that was just the start, there was also a �8,000 bank overdraft (WHICH YOU NEED TO KEEP AN EYE ON)i had to pay off ,all sorts of debt collecters were chasing me. had to borrow the money from my family and remortgage to avoid court. This happened over 15 years ago and im still paying for it
I believe a lot of these problems can be avoided if a proper partnership aggreement is drawn up by a solicitor before starting the business.
ie if the other partner racks up debts that are part of the business, even if you dont know about them, and he vanishes or has no assets, the creditors will come to you for the full amount. I got hit with a �2,500 advertising bill that i knew nothing about and that was just the start, there was also a �8,000 bank overdraft (WHICH YOU NEED TO KEEP AN EYE ON)i had to pay off ,all sorts of debt collecters were chasing me. had to borrow the money from my family and remortgage to avoid court. This happened over 15 years ago and im still paying for it
I believe a lot of these problems can be avoided if a proper partnership aggreement is drawn up by a solicitor before starting the business.
yea mister.l i have left shool. im 28 and a mum of 2. to the rest of u thank u 4 ur replys. my partner said oneday ill have to c the taxman n declare n be able to tell him all the in goings and out goings and if i cant ill get put inside. (dont know if hes just trying to worry me or what hes doing). hes very clever n as i found out sly. all the paper work he took me throu at beginning is no where to be found. think im gonna have to get some kinda legal advice. chas2008 u dont sound like u had it good, y do people do these things. just plain nasty
my business partner started out as a friend, went to his wedding etc. I trusted him 100%, but when the business started struggling he just started doing stupid things and just made matters worse, just dug a bigger hole that i didnt see coming.One night he hired a van and just emptied the premises, went through the legal bit courts etc. but just cost me even more money. The bit that really hurt was he blamed me for everything , in reality i had funded everything and took nothing, not even a wage.
in terms of hard cash probably cost me �30,000 + !!another saying i will aways remember being said to me, never trust anyone in business..sounds hard but seems to be true. If i hear of anyone talking about partnerships i explain the downfalls and always advise seeking legal advice first. I believe in they eyes of a court you only have to invest/loan a bit of money to be considred a partner and the consequences that go with it.
If you have any doubts you need to put a stop to it now before it gets out of control.
in terms of hard cash probably cost me �30,000 + !!another saying i will aways remember being said to me, never trust anyone in business..sounds hard but seems to be true. If i hear of anyone talking about partnerships i explain the downfalls and always advise seeking legal advice first. I believe in they eyes of a court you only have to invest/loan a bit of money to be considred a partner and the consequences that go with it.
If you have any doubts you need to put a stop to it now before it gets out of control.
Tazz, he is trying to frighten you. Running a partnership is NOT the same as running a limited company. With a limited company the BUSINESS has dealings with the taxman and pays Corporation Tax on its profits. With a partnership there are no accounts that form any part of the taxman's interest, just accounts for the purpose of informing the partners about the financial position. As I said before, any profits from the business (i.e. incomings less expenses) are the partners which they either draw or leave in the business. As they draw income, that income forms the basis of the income on the self-employed tax return.
If something doesnt feel right, follow your instincts and withdraw yourself from this partnership - it sounds more like a dictatorship anyway, based on what you say.
Your business partner is obviously the 'stronger personality' (absolutely no disrespect meant there) and that does not make for a balanced relationship, meaning if he is walking over you just 8 months into the partnership how will he be after a couple of years??
If you believe in the principles of the business you are both in, perhaps you could look to do it small scale by yourself?
Lastly, I think I read right that the bank account is in your name - if that is the case, take charge before it costs you - trust me when I say that people have far less consideration for responsibility when there is no legal comeback on them, meaning that if it 'hit the fan' he would probably disappear into the sunset.
Good luck to you
Your business partner is obviously the 'stronger personality' (absolutely no disrespect meant there) and that does not make for a balanced relationship, meaning if he is walking over you just 8 months into the partnership how will he be after a couple of years??
If you believe in the principles of the business you are both in, perhaps you could look to do it small scale by yourself?
Lastly, I think I read right that the bank account is in your name - if that is the case, take charge before it costs you - trust me when I say that people have far less consideration for responsibility when there is no legal comeback on them, meaning that if it 'hit the fan' he would probably disappear into the sunset.
Good luck to you
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