More than one person involved in running the business? A partnership could be the right structure for you
When two or more legal persons (Not necessarily an individual) come together in business, a partnership can be setup to share the risk, responsibility and ownership of the business.
When registering a partnership with the HMRC you will need to select a name and a nominated partner, who is responsible for keeping business records and managing the tax returns.
Although a formal partnership agreement is not a legal requirement, we would highly recommend getting a written contract in place. It is important to decide, before the business is started, what the aims of the business are, as well as each partners contributions to the business and profit share.
Our cloud-based software will help you to keep track of your incomings and outgoings. Invoices can easily be raised online, and any expense or asset purchases enter – with the proof of purchase attached. A live profit and loss will help you track the business health and declare any profit distributions. Your distributions can also be recorded online, and any estimated taxes will be calculated for you.
A partnership return needs to be completed annually, showing income, expenditure and profit – though the partnership does not pay any tax. We will complete this return and send to you for your approval.
Taxes are paid through the partners self-assessment returns – which we will also complete and send to you for your approval. If the taxes you owe are more than £1,000 you will be required to make payments on account for the following year. The HMRC assumes that your taxes for the following tax year, will be at least the same, and require you to pay this in advance in 2 equal instalments (due 31 January and 31 July).
Our fees start from £40 (+VAT) per month.