for Partnerships from Beach Accountants
Accountants offer the following services for Partnerships:
- Annual Report & Accounts
- Self Assessment Tax Returns
- Partnership Agreements
- Management Accounts
- Book Keeping
- Registration with the HM Revenue & Customs (HMRC)
- Book Keeping Training
- Business Setup Assistance for Start Ups
- HM Tax Investigations
- Online filing
This is where two or more people want to run a business together, sharing
the costs and responsibilities.
It is highly recommended that when you start a Partnership business,
you have a Partnership Agreement, so that it is clear form the outset
of the income share you will receive and what duties that you are expected
The partners of the business all have to be aware of the following information
Registration and Responsibilities
- Within 3 months of starting to trade, each partner must inform the
HMRC. This can be done using the CWF1 form,
by telephone or on their website. If you don’t advise the HMRC
within this time limit you are subject to a Penalty.
- It is a legal requirement that you should maintain good book keeping
records and keep the records for six full tax years. A penalty can be
imposed by HMRC if you do not keep adequate records.
- It is advisable to check for any grants or financial assistance for
start-ups or expanding businesses.
- When you start trading as a Partnership, each partner uses their own
money and assets, so be careful in that every partner is also liable
for any debts the partnership business incurs.
Accounting Requirements and Deadlines.
- You must produce an annual Partnership Report and Accounts
- Every partner needs to submit an annual Self Assessment Tax Return
- A Partnership Tax Return must also be submitted to the HMRC.
- The submission deadline for your Self Assessment Tax Return, which
incorporates your Report and Accounts, and the Partnership Tax Return
is 31 January.
Tax and National Insurance Contributions
- The profits are split into the agreed profit percentages and are
taxed under Income Tax rules. Income Tax has various rates depending
on the profits. This Tax is paid at the end of January and July.
- Self-Assessment has two rates of National Insurance Contributions.
Class 2 is a fixed rate and is payable monthly by Direct Debit. Class
4 is a variable rate depending on your profits and is paid with your
Income Tax in January and July.
- Failure to submit a Self Assessment Tax Return or Partnership Tax
Return on time will automatically create a penalty and interest will
be due on your tax liability.
- See resources for information on rates.
For further information or advice contact