importing - questions on accounting, tax, etc

[newbie_soletrader]

Hello All,

Please, please advice, I am so CONFUSED!!

I have a friend in India whom I wish to collaborate with to start an online store selling items from India here in the UK.

1. Is is possible to have a partnership where I am one partner and she is the other?

2. Come tax time, can we account for expenses incurred both here and in India towards the business?

3. These expenses will be in INR (rupees) and the sales in GBP.
How would that work?

4. The website payments will be directed to a UK business account, and I intend to then pay her half the profits (in INR, from my Indian bank account)

Any help will be greatly appreciated.
Many thanks!

[Indizine]

moved to the accounting forum

[Nilesh Mandvia]

From your post it seems that you want to set up a business in uk so, not only tax but also you have to consider import duty/excise duty, vat (once you are over the threshold). So speak to good accountant who would be able to advise you on various issues.

For your friend in India, she may be liable to pay tax in uk and in India, there is a double treaty but you need to speak to an expert!