Tax payable for partnership where no salary is paid?

[palmtrees]

I'm part of a partnership that has done some small contract work in the past. This has been done while also working full time, we never worked full time in the partnership.

Any company expense has been on the purchase of testing devices, or fees required to gain access to IT resources (apple developer membership @99 euro per year, for example).

As we are full-time employees at another company with good salaries, we don't touch the partnership account, as that money is earmarked for those recurring costs, and also if a client wants us to update their product or fix any bugs, we'd like to have the money to do so.

What do we need to declare to revenue? The situation seems unclear as we are not drawing a salary from the partnership.
The total money that was ever in the account is ~5000 euro, so no point in really taking a wage from that - we'd rather keep it for any future development costs.

 

[T McGibney]

The partners are individually liable to income tax (and PRSI & USC) on their share of the annual partnership profits.

Has the partnership being filing a Form 1 Firms tax return each year?

 

[palmtrees]

Well it was created in December last year, and there was 0 in the account until Jan/Feb of this year, so we didn't file any returns as there were none.

I'd like to get organised with it for this year if necessary. I'll look into Form 1 Firms tax return. I'd like to think I can do it without an accountant as the amount of money we have, and the number of expenses we have made, is very low. We'd end up paying most of the money left to an accountant otherwise.

 

[T McGibney]

Work away. The problem with DIY though is that if you're unsure of even the basic workings of the tax system for partnerships, there's a big risk that you'll make costly mistakes.

 

[palmtrees]

Work away. The problem with DIY though is that if you're unsure of even the basic workings of the tax system for partnerships, there's a big risk that you'll make costly mistakes.

Fair enough. Looks like we need to have this done in the next two weeks (31st Oct deadline) so I'll look into it this evening and get an accountant if I can't figure it out.

 

[fizzy]

Well it was created in December last year, and there was 0 in the account until Jan/Feb of this year, so we didn't file any returns as there were none.

It's Pay & File for 2014 that has the 31 October deadline (mid Nov online). Returns for 2015 don't need to be done until Oct/Nov 2016.