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Services for Partnerships from Beach Accountants

Shaking handsBeach Accountants offer the following services for Partnerships:

  • Annual Report & Accounts
  • Self Assessment Tax Returns
  • Payroll
  • VAT
  • 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 to perform.

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 to HMRC.
  • 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 Beach Accountants.

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