Salaried Partner

[2sp_]

Am I right in thinking that a Salaried Partner within a business just gets a set salary each month and the profit and loss of the business doesn't affect their income?

Just a query as our (new) accountant seems a bit vague...

[Old_Geezer]

I have no expert knowledge but I would have thought it might depend on the agreement made when taking them on as a partner.

[2sp_]

That's what the old accountant told us when Mr P became a partner in the family business. The new one (in the same firm) has forwarded us the accounts showing Mr P taking a portion of the profits.

Seems a bit strange to me.

[Maydup]

Its only a title and the devil is in the detail. A salaried partner is most likely to be guaranteed a salary whilst also taking a percentage of profits...IMHO

[2sp_]

We were told by our original accountant that Mr would get a guaranteed salary but not take any of the profits. (It's a farm, we very rarely make a profit anyway.)

I always get the feeling with them that they feed us a load of guff and just do what is easiest for them...

[2sp_]

Thanks for your answers, by the way, OG and Maydup. I think Mr P and I will go into the office and sit until they can explain to us exactly what is going on.

[Maydup]

Good idea, and then get them to write it down for you to take away. Copy on their file and copy for Mr.

[ummmm]

When I ran a business both me and the other director got salaries on PAYE. The profits stayed in the business account.

[2sp_]

Thanks ummmm. The accountant just seems to do whatever they want and the partners go along with it. I dared to complain to one of the other partners about the account and I got my head bitten off.