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Thanks for the extra information @Freds Friends
OK - I'll try to work through it (then at the end tell you that, yes you probably should be looking at an official partnership!).
The way you are currently working is this:
It's a technical point but the (slight) danger with working like this is that HMRC could say that your friend/partner is not actually self-employed but should be regarded as your employee.
If you were to form a Partnership, there would be a clear definition for HMRC to show that you are working together as a business with equal risk & reward.
Your partner would then not invoice for her share - both parties would take money as Drawings.
If this is a long-term operation (& something that may grow) it may be worth discussing with an accountant to see whether a Partnership or Limited Company would be more beneficial in terms of tax.
(unless you're bending the rules and/or earning £000s per week there's probably not much in it & the rules around Partnerships are much simpler)
Hope this helps.
Need a bit more detail. At the moment, there's not much to go on without guessing.
What exactly are you trying to categorise & where?
Are you & your partner an official Partnership (or limited company) - or are you simply two self-employed people working together?
Hi there, @Freds Friends,
Can you tell us more about the issue you're having with our online help? You can also share the details of your concern below and I'll surely get back to you as soon as possible with the best solution.
You can check this reference on what accounts are best to use in categorizing transactions: Categorise transactions in QuickBooks Online
If you have other questions, I'll be happy to answer them for you. Just leave a comment below and I'll take a look at it. Have a great rest of the day.
Thanks for the extra information @Freds Friends
OK - I'll try to work through it (then at the end tell you that, yes you probably should be looking at an official partnership!).
The way you are currently working is this:
It's a technical point but the (slight) danger with working like this is that HMRC could say that your friend/partner is not actually self-employed but should be regarded as your employee.
If you were to form a Partnership, there would be a clear definition for HMRC to show that you are working together as a business with equal risk & reward.
Your partner would then not invoice for her share - both parties would take money as Drawings.
If this is a long-term operation (& something that may grow) it may be worth discussing with an accountant to see whether a Partnership or Limited Company would be more beneficial in terms of tax.
(unless you're bending the rules and/or earning £000s per week there's probably not much in it & the rules around Partnerships are much simpler)
Hope this helps.
I don’t think I thanked you Paul but I am yet to follow your instructions but they are much appreciated… Kind Regards Mandy
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