Quizzes & Puzzles11 mins ago
tax issue
3 Answers
in partnership with brothers in hotel.both have fulltime jobs outwith buisness.i work fulltime in hotel.brothers say hotel should pay all their tax demands when due.all have had tax refunds in past from hotel partnership.i say they should pay their own tax and shoudnt expect the busineess to pick up the bill.Am i wrong or are they right.
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There's no right or wrong answer to this.
Income tax bills for partners, whether they work in the hotel or not, are their own personal responsibility, not a business expense. It's the same for all of you, you working in the hotel doesn't make you any different.
However, that doesn't prevent the funds to pay the bills actually being taken from the hotel. Nothing wrong with that, particularly if the hotel has surplus funds. It would be drawings, not an expense, but it's perfectly reasonable. Most partners in a partnership actually pay their tax bill from the partnership bank account.
Income tax bills for partners, whether they work in the hotel or not, are their own personal responsibility, not a business expense. It's the same for all of you, you working in the hotel doesn't make you any different.
However, that doesn't prevent the funds to pay the bills actually being taken from the hotel. Nothing wrong with that, particularly if the hotel has surplus funds. It would be drawings, not an expense, but it's perfectly reasonable. Most partners in a partnership actually pay their tax bill from the partnership bank account.
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