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Post Info TOPIC: % of profit payable to a welfare fund
StuartAnder


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% of profit payable to a welfare fund
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Hi I have a client who has to pay x% of the partnerships profit at the end of their FY. My question is is this tax deductible when calculations the partnership accounts? Or how would you deal with this? Thanks Stuart

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Shamus


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What do you mean by has to?

Why? (and how did they end up n that situation).

Can the partnership continue without paying into it?

Who are the beneficiaries of the fund?



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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
StuartAnder


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They agreed to it as they are using their property to run the cafe. It's an army training base. They are happy to pay it, just wondered where is reasonable in the accounts :) Thanks Stuart

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RobH


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Is this in effect rent or commission? I have a client who has an outlet in a shopping centre and his rent is determined as a percentage of his turnover. Could this be a similar situation, if so I'd put it in rent.

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Rob
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StuartAnder


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Ah yes I think you are right. They don't have rent to pay :) Thanks Stuart

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