Hope there's someone out there with a similar experience to me on this...
I took over a business over a year ago which had a significant overdraft (now nearly cleared thankfully!).
The partnership accounts show a gross profit accurig to me (which I have to pay tax on) however the bulk of this went straight towards clearing the overdraft.
The CMS are saying that I have to pay based on the gross profit figure even though I have not seen a penny of the majority of this money.... I'm happy to pay the CMS what I have received..
It seems unfair to me. Moving forward I'm happy to pay whatever the gross profit figure is but when it's not coming to me how can I pay my ex partner the inflated figure?
If it was a limited company I believe that I would only be liable for my drawings but because it's a partnership I seem to be screwed!
If anyone can help or has appealed this type of situation that would be greatly apprecaited.
Hi There,
I would speak with your accountant if you have one and find one to talk to if you don't, this is only my view, but if the partnership had debts, then in effect it wasn't turning a profit,
GTTS
You could try asking Samantha, our finance Moderator. Here's a link to her thread
https://www.dad.info/forum/finance/50253-ask-your-finance-questions-here#93591