NIM21021 - Class 2 National Insurance Contributions: Small Earnings Exception: Special Groups: Partners바카라 사이트� salaries
Although a partner could not also be treated as an employee of the business, the partnership agreement could provide for a partner to draw a salary. A partner바카라 사이트檚 salary was not earnings from employment but an allocation of the self-employed profits. Similarly, partners바카라 사이트� salaries did not count as business expenses; they were a share of the net profit and, where formal accounts were produced, would normally be shown as an extension of the Profit and Loss Account. A percentage of the profit remaining after allocation of salaries could be paid in addition.
Example
A partnership of 2 people made profits of 拢30,000. The agreement was that the profits were allocated equally after payment of a salary of 바카라 사이트溌�20,000 to partner 바카라 사이트淎바카라 사이트�. After deducting the salary, 拢10,000 profits were to be divided equally giving each partner 拢5,000. Partner 바카라 사이트淎바카라 사이트� 바카라 사이트檚 share of the profit was 拢25,000 (salary 拢20,000 + 拢5,000) and 바카라 사이트淏바카라 사이트� 바카라 사이트榮 拢5,000. If the partnership had only made a profit of 拢8,000, partner 바카라 사이트淎바카라 사이트� would be allocated all the profit because of the agreement that he or she was due a salary of 拢20,000 before the net profit was allocated.