Hi,
I started a barbershop at the beginning of the year with a close friend with partnership intent with the general basis being:
- 50/50 profit distribution after my loan (startup costs) were recovered
- But in the meantime whilst the business didn't have any real profits I've been paying him £250/week to be able to pay his bills...
- The idea being it would be coming out of my additional cash added to the business and be an expense on the balance sheet
He's received around £6700 since February
Me being a dumbass assumed that it would be fine as long as the details were laid out in the partnership agreement, which we've not got around to creating...
We're now closing and trying to clean up the tax situation before we end up having a big falling out (He's sour that I'm not looking to fund the venture through the pandemic)
What are my options here?
>> Just file late paye and eat the late fees?
>> The partnership agreement gets backdated?
I've not been able to explain this situation very well to my accountant...
Any help would be appreciated
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