Partnership
We work with partners to ensure their business is performing to its full capabilities.
What is a partnership?
There are two different types of partnership;
(Sole Trader) Partnership
In this type of partnership, two or more partners personally share responsibility for the business.
Profits are shared between the partners and each partner pays tax on their share.
Partnerships use their accounts to submit a Partnership Tax Return to HMRC each year which informs HMRC of tax due on the partnership’s profits and the amounts payable by each partner.
The partners then report their share of the partnership profits via self-assessment. Partnerships of this type, as with a sole trader, can be employers and can be VAT registered.
Limited Liability Partnership (LLP)
A Limited Liability Partnership is exactly as it sounds – the liability of the partners is limited.
A LLP is a separate entity owned by the partners who are liable for the amount invested / the amount they have agreed to contribute.
As with Sole Trader Partnerships, LLP members are self-employed for tax purposes.
As a LLP is a separate entity, accounts must be filed with Companies House, as for Limited Companies. Each LLP member has to register for self-assessment with HMRC and pay tax on their share of the profits via a self-assessment tax return.
As our client, you will
- Understand your partnership accounts and the taxable profits
- Know your tax liabilities well in advance of your deadlines
- Know that your partnership accounts and tax return are completely accurate
As your accountant, we will;
- Contact you as soon as the tax year ends
- Provide you with a simple checklist to help you get your information together
- Give you a completion date as soon as we receive your records
