Are you in a business partnership?
Partnerships, like all business structures have certain rules that must be followed when it comes to their accounts. It's not always straightforward understanding what exactly you and your business partners have to do to stay in line with HMRC. For that reason, you can save yourself the confusion, as well as time and money, by seeking the help of an accountant.
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Are you an already established partnership, or looking to start one?
MoynanSmith Chartered Accountants and Tax Advisers in Carlisle can help. Partnerships are business structures with at least two 'partners'. Partners can be individuals or limited companies. There is no corporation tax applied to partnership businesses. Instead each partner pays income tax on their share of profit. All partners must also complete their own personal self-assessment form and pay national insurance. One nominated partner completes and sends an annual partnership self-assessment tax return.
Partnerships leave owners with unlimited liability. This means each partner has responsibility to pay off any debts the business may incur. You're able to avoid this liability by opting instead for a Limited Liability Partnership (LLP).
There are numerous benefits of setting up as a partnership, including:
- Scope for capital - a higher number of partners means that a larger amount of money can be put into the company, increasing its chance to grow.
- More flexible - partnerships are less strictly regulated than companies. There is no interference from shareholders and partners have the only say.
- Plays to strengths - roles can be assigned based on individual partners' skill sets.
- More ideas - the more partners involved, the more thoughts and ideas will be brought forward.
Want help with your partnership tax return? Or considering setting up a partnership company? Whatever your need, MoynanSmith will help. Our team of chartered accountants and chartered tax advisers will set you on the right path. You'll save time figuring out complex tax legislation and save money by paying as little as you need to. What's more is, you'll be able to focus on what's really important; the running of your business.