Re: getting capital back
Hi,
Being self-employed either as a partnership or a sole trader(not a Ltd. company) u will pay tax on your profits, it the case of a partnership share of profits. Drawings- what you take out has no relevence to this. I ofton give the following example:
U set up in buisness, your sales are €1000and have expenses of €1000, u take out €2000 to live on(drawings) and run up an overdraft of €2000.
You have no profit - the sales and expenses balance out.
the drawings came from overdraft. You pay no tax.
example 2.
sales €10000, expenses €5000 , drawings €2000
your profit is 10000-5000= 5000 you pay tax(less allowances ) on the €5k.
BY the way: I would strongly advise that you would get a solicitor to draw up a detailed partnership agreement, it will save a major amount of hassel later. In fact I will not take on a partnership case unless they get one drawn up and sign it.This generally forces their hand to do so.
I would realy sugest that you would get an accountant to help you with your buisness.