Partnerships
Experts in accountancy services for
partnerships.
In a partnership, you and your partners personally share responsibility for the business. We make sure the returns, the records and the split are all right.
- Partnership and personal returns, handled together
- LLP formation and filing, including Companies House
- Clear on who owes what, so profit shares do not become arguments
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What is a partnership?
You and your partner or partners personally share responsibility for the business. That includes any losses the business makes, and bills for things you buy for it such as stock or equipment. Partners share the profits, and each partner pays tax on their own share. A partner does not have to be an individual: a limited company counts as a legal person and can also be a partner.
What you need to do.
When you set up a business partnership there are three things to settle.
Choose a name
The same restrictions apply as for a sole trader business name.
Choose a nominated partner
Responsible for managing the partnership tax returns and records.
Register with HMRC
The partnership registers, and so does each individual partner.
The nominated partner is responsible for the partnership’s tax returns and records. Choose carefully.
Limited liability partnerships.
An LLP gives the partners limited liability while keeping much of the flexibility of a partnership. There is more to set up, and more to file.
- Choose a name
- Have a registered address, which will be publicly available
- Have at least two designated members
- Have an LLP agreement setting out how the LLP will be run
- Register the LLP with Companies House
Reviews
What people say on Google.
Before Onyx we didn’t really have a clue where we stood from one day to the next. They helped us take financial control of the business — and gave us real insight into running it better.
Diligent, fast to respond, and they go the extra mile. They made us fully compliant and fixed errors I didn’t know were there. A very positive move from my previous accountants.
Eight years in, they still go well beyond compliance — strategic advice, quick answers, and a genuine eye on opportunities that benefit us.
Questions we get asked.
Do we need a written partnership agreement?
It is not legally required for a general partnership, but going without one is how partners end up in dispute. Without an agreement the default statutory rules apply, and they are rarely what anyone actually intended.
How is partnership profit taxed?
The partnership files a return showing the profit and how it is split. Each partner then pays income tax and National Insurance on their own share through self assessment, whether or not they have drawn the money.
What is the difference between a partnership and an LLP?
In a general partnership the partners are personally liable for the debts. In an LLP that liability is limited, but the LLP has to register at Companies House and file accounts there, so its figures are public.
Can a partner leave or join part-way through the year?
Yes, and it needs handling properly. Profit shares are apportioned, the partnership return reflects the change, and the incoming or outgoing partner has their own registration or cessation to deal with. Tell us before it happens rather than after.
Contact us now for a free, no-obligation consultation.
No obligation, and a fixed written quote before you commit to anything.