Partners Expenses
Discussion
I've been reading all the IR bumpf about the Partnership Tax Return.
It seems to imply that the only way for a Partner to claim business expenses is through the partnership itself.
I.e. the expenses (and Capital Allowances) are taken into account in calculating the final profit/loss of the partnership.
Assuming there is no other way, do you calculate trading profits and draw up accounts, and then simply "add" these other business expenses onto the SA800.
Things I am thinking of are business element of household expenses (under the IR rules), business telephone costs etc.
Is another way, for the partner to "submit" a claim to the partnership for these expenses and be paid back for them as they are incurred?
Thanks,
Simon
It seems to imply that the only way for a Partner to claim business expenses is through the partnership itself.
I.e. the expenses (and Capital Allowances) are taken into account in calculating the final profit/loss of the partnership.
Assuming there is no other way, do you calculate trading profits and draw up accounts, and then simply "add" these other business expenses onto the SA800.
Things I am thinking of are business element of household expenses (under the IR rules), business telephone costs etc.
Is another way, for the partner to "submit" a claim to the partnership for these expenses and be paid back for them as they are incurred?
Thanks,
Simon
This is obviously linked to your other thread.
If you are so concerned about claiming "non-partnership" expenses as "partnership" expenses, the Revenue might be curious as to what type of partnership you are involved in - or even if it is a genuine partnership.
There are facilities for claiming expenses for business costs incurred outside the business - but they are quite rare and restricted.
The assumption is that business' expenses should be reflected in the business Profit and Loss account.
If you are so concerned about claiming "non-partnership" expenses as "partnership" expenses, the Revenue might be curious as to what type of partnership you are involved in - or even if it is a genuine partnership.
There are facilities for claiming expenses for business costs incurred outside the business - but they are quite rare and restricted.
The assumption is that business' expenses should be reflected in the business Profit and Loss account.
Edited by Eric Mc on Wednesday 2nd May 11:11
If you DON'T process all the business costs through the business profit and loss account, you will not get a true view of how well the business is performing and its true profitability. In a way, you would not be complying with the normal GAAPs. So, it is not just a tax matter, but an accounting issue too.
The Revenue also work on the assumption that GAAPs are being applied in the compliling of accounts.
In my oiinion, it would be easier and more straightforward to ensure that all business related expenditure is properly reflected in the business accounts.
The Revenue also work on the assumption that GAAPs are being applied in the compliling of accounts.
In my oiinion, it would be easier and more straightforward to ensure that all business related expenditure is properly reflected in the business accounts.
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