Limited Liability Partnership - understanding the payments

[Catafracta]

Hello

I was using a Limited Liability Partnership structure in my last contract. In my payment statements there are of two types: "Drawings" and "Partnership".

Does anyone know the diference between those? I guess one's the dividends and the other the salary (wages), but I'm not sure which is which and surfing the web didn't really clarify it.

Thank you

[JustinTime]

Hello

I was using a Limited Liability Partnership structure in my last contract. In my payment statements there are of two types: "Drawings" and "Partnership".

Does anyone know the diference between those? I guess one's the dividends and the other the salary (wages), but I'm not sure which is which and surfing the web didn't really clarify it.

Thank you

Have you thought about asking the other 'Partners'?

[Catafracta]

Have you thought about asking the other 'Partners'?

Of course, but the company I was using to set up the structure is not answering my emails.

[JustinTime]

Of course, but the company I was using to set up the structure is not answering my emails.

One would normally know who the other partners are in such a relationship; was your's a vehicle to mitigate your tax position?

If so, give us the true facts so that we may advise appropriately.

[TheFaQQer]

I was using a Limited Liability Partnership structure in my last contract. In my payment statements there are of two types: "Drawings" and "Partnership".

Does anyone know the diference between those? I guess one's the dividends and the other the salary (wages), but I'm not sure which is which and surfing the web didn't really clarify it.

<nluk>What does your accountant say?</nluk>

[TheFaQQer]

The quick Google I did says that

As with a general partnership, drawings are cash advances paid to members throughout the year against the anticipated profits of the LLP.

An LLP agreement should detail:

1 Rules for drawings and their accounting treatment (in particular, how and when they can be made).
2 How the anticipated profits will be calculated.
3 The percentage of anticipated profits that can be drawn.
4 What happens if the anticipated profits prove to be over or under estimated.

So, what does your LLP agreement say?

[JustinTime]

So, what does your LLP agreement say?

Posts passim: http://forums.contractoruk.com/busin...ml#post1987239

[stek]

Hello

I was using a Limited Liability Partnership structure in my last contract. In my payment statements there are of two types: "Drawings" and "Partnership".

Does anyone know the diference between those? I guess one's the dividends and the other the salary (wages), but I'm not sure which is which and surfing the web didn't really clarify it.

Thank you

Partners don't get dividends. Drawings are monies taken out as self-employed or partner in an unlimited partnership, not sure. When I was in an LLP I got payments a fee-earner.

And I got stung for additional tax 18 months later after LLP disappeared so be careful.....

[Scruff]

[wattaj]

I might pull up a chair for this one as well... Although I doubt that it will end well.