In the eyes of HMRC trading as a Partnership is similar in many respects to that of a sole trader but differs in that there is more than one owner. Partnerships can be difficult to sail so good advice is recommended.
All partners are entillted to specif percentage of the profits, and the liabilities, so they must pay tax on that percentage.
As with a sole trader, each partner’s share of the profits is treated as their income it is irrelevanlt what you draw from the business its the profit you make.
There are benefits of running a partnership…
- A Problem Shared – Having more business owners allows the financial and operational responsibility for running the business to be shared. Tasks can be assigned according to skills and the individual workload can be reduced.
- Flexibility- Partnerships are easy to form and changes can rasily be made to partners responsibilities and to their profit-sharing ratios.
- Decision-making – Partners share the decision making which can be a beneficial as there are more brains to pick but it can be problematic if disagreements arise.
Our Partnership Accounts Service Includes:
- Partnership Accounts
- Partner ship Tax Return
- Self-Assessment Tax Returns
- Tax Planning
- Tax Guidance