Business Partner Sharing Travel costs?
Discussion
short story. started a business running from home, after start up engaged with a partner on basis of sharing profits/costs as we operate in same business area. We both run our own companies and apportion monies dependant on business generation. At the outset it was agreed that we would operate from the existing location ( my home ). We're in the middle of a review and partner has told me that he feels that his travel costs to this place of work are a business expense and as such should be shared ( as we would other costs )- on the basis that if we'd taken offices somewhere between our 2 homes then we'd both be sharing the cost of getting to / manning the office rather than the burden falling to him as he's the only one travelling. I don't want to be unreasonable so am looking for any views ( not views relating to what officially the Revnue say about travel to work that's a seperate issue ).....
IANAA but I would have thought that the cost of getting to work is a personal cost rather than a business cost - If he were in an employed role would he be billing his employers at the end of the month?
Personally, I would be looking to maybe demerge your partnership if I were you, he doesn't sound like the sort of person that I would want to be in business with.
My 2c
Personally, I would be looking to maybe demerge your partnership if I were you, he doesn't sound like the sort of person that I would want to be in business with.
My 2c
ok more info. 2 sep ltd co's - majority of business thru 1 of them,depending which co. it's more effective to use but all deals/business apportioned in relation to input, costs split in same ratio.so we share dependant on client ownership ( new 50:50, old/existing 75:25) and the costs that are split also includes an allowance for the office inc elec. I appreciate the argument that if he/we were working as employees then this travel to work would be considered a personal expense. However, his argument is that he views the travel to here as a joint expense ( if he'd started own compnay from home he wouldnt have the travel etc), or premises midway would halve his personal cost. I can see his logic, amd perhaps i'm being unreasonable, but it doesn't feel right to me to be contributing to him coming to our place of work.
If you are in business together and you want it to work I would just see how much he wants in travel expenses and try and work something out. At the end of the day you are working from your home which means you don’t have to travel. If the shoe was on the other foot and you were incurring cost to get to his house would you have his same plight?
I would just try and work something out. How much are we talking here?
You don’t want to blow a decent profit making partnership over travel expenses to your house do you??
I would just try and work something out. How much are we talking here?
You don’t want to blow a decent profit making partnership over travel expenses to your house do you??
whynotindeed said:
it doesn't feel right to me to be contributing to him coming to our place of work.
It most certainly isn't right. Tell him to take a flying f
k at a rolling donut.Is this the sort of person you really want to be in business with? You are still at the early stages, what will it be like if/when you are making serious money?
whynotindeed said:
ok more info. 2 sep ltd co's - majority of business thru 1 of them,depending which co. it's more effective to use but all deals/business apportioned in relation to input, costs split in same ratio.so we share dependant on client ownership ( new 50:50, old/existing 75:25) and the costs that are split also includes an allowance for the office inc elec. I appreciate the argument that if he/we were working as employees then this travel to work would be considered a personal expense. However, his argument is that he views the travel to here as a joint expense ( if he'd started own compnay from home he wouldnt have the travel etc), or premises midway would halve his personal cost. I can see his logic, amd perhaps i'm being unreasonable, but it doesn't feel right to me to be contributing to him coming to our place of work.
Sorry, I can't read that.Could you try posting that again with some semblance of punctuation (it doesn't have to be perfect - just readable)
Edited by Eric Mc on Thursday 23 July 15:10
Eric Mc said:
whynotindeed said:
ok more info. 2 sep ltd co's - majority of business thru 1 of them,depending which co. it's more effective to use but all deals/business apportioned in relation to input, costs split in same ratio.so we share dependant on client ownership ( new 50:50, old/existing 75:25) and the costs that are split also includes an allowance for the office inc elec. I appreciate the argument that if he/we were working as employees then this travel to work would be considered a personal expense. However, his argument is that he views the travel to here as a joint expense ( if he'd started own compnay from home he wouldnt have the travel etc), or premises midway would halve his personal cost. I can see his logic, amd perhaps i'm being unreasonable, but it doesn't feel right to me to be contributing to him coming to our place of work.
Sorry, I can't read that.Could you try posting that again with some semblance of punctuation (it doesn't have to be perfect - just readable)
Edited by Eric Mc on Thursday 23 July 15:10
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