PARTNERSHIPS

Partnerships are businesses owned and controlled by more than one person.

In a partnership each partner is taxed as a self employed individual, similar to a sole trader, and has to submit a self assessment tax return.  Each partner is responsible for paying tax and national insurance on their share of the profits.

Partnership Tax - Although not taxable in its own right the partnership must also submit a partnership tax return. This will show the profits and adjustments to give taxable profits which are then shared amongst the partners.

Partnership Agreement - There is no requirement in law to have a partnership agreement however it is strongly recommended that such an agreement is drawn up.  Partnership law is old and the default position in the absence of a partnership agreement can be unexpected.

Partnership accounts - are simpler than those of a limited company and a partnership does not have to make financial information available at Companies House.

      Features:

• A Partnership is a simple structure to set up
• Partnerships are not subject to the swathe of rules that companies are subject to

• Partners are jointly and severally liable for partnership debts
• Partnerships can be difficult to sell as the business itself has no legal status

If you are a Partnership looking for help and advice please contact us.

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Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd.  Registered in England No. 05770414