A Partnership is a formal working arrangement between two or more individuals to manage and operate a business, and share the resulting profits.
Within a Partnership, all Partners are equally personally liable for any resulting liabilities as well as sharing equally in the profits. This is an important consideration before forming a Partnership. A Partner could stand to lose all of their personal assets, as liability for debts is not restricted to the Partner who entered the agreement.
(As an aside, we would always recommend a Partnership Agreement be drawn up to reduce friction around difficult circumstances in future.)
There are variations on the ‘normal’ Partnership structure, such as Limited Liability Partnerships, and Limited Partnerships.
The profits made by a Partnership are included in a Partnership Tax Return each year, and your share of the income is then included in your Self Assessment Tax return. Both Returns must be submitted by the 31st January each year.
The following articles are relevant to an Ordinary Partnership, in which each Partner is jointly and severally liable, run the business together and share the profits. Though posts in this section are specific to Partnerships, and therefore limited in number, please do look at the posts and articles in other sections of our Information Centre which apply far more generally to business owners.
Which Business Structure is right for you?
There are four primary options for a business structure in the UK, but it’s essential that you consider carefully which is best for you BEFORE you start trading. Each has its own set of advantages and disadvantages. In this post we’ll lay out the key differences.
Will your Year End need to change?
As part of the recent Budget announcements, it was confirmed that all self-employed individuals and partners will switch from current year basis to tax year basis from 6th April 2024.
Use of home as office
HMRC’s guidance on how to calculate Use of Home as Office is misleading, so watch this to make sure you are claiming all that you should be!
How long must I keep my records?
There are rules around how long you must keep your records. Here we explain how long you must keep them, and in what format.
Taking the pain out of mileage tracking
Mileage tracking is a pain, but it’s necessary if you want to make sure you get back what you’re entitled to! There are a range of methods to keep track as you go, but here’s an easy option…
How much is my business worth?
This is a question we’re asked quite a lot! The truth is, a business value will depend on a range of factors and any valuation is only ever a guide for planning purposes.
Valuing a business is a complex business…
Key Tax Dates for Businesses
The tax year constantly repeats, so there are some key tax dates for businesses that you need to be aware of every year.
Missing them can prove costly, so we’d advise getting them into your diary, and carrying them forward from year to year.
What can you claim if you’re investing in your business?
When you’re investing in your business, it’s not a decision that you take lightly, and it’s one that can make a major difference to your profits and your tax liability.
It’s important that any resulting tax relief claim is considered carefully…
Related News Items
Why not take a look at these sections too, as there is some overlap between our categories and we’d hate you to miss out!
Management & Growth
Each of our clients receives regular updates that keep them aware of changes and suggestions on a wide range of subjects; if you’d like to receive those too, just click on the button below, fill in your details and we’ll do the rest!
‘Liz & Chris Baranov are the most friendly, helpful, giving and ‘unlikely’ accountants you could ever meet. 😊 Their plain-talking, easy-to-understand and straight-down-the-line advice and support is so refreshing, especially in an industry that tends to blind its clients with complex explanations, jargon & industry-speak! #HighlyRecommended’
Mrs M Cross, First Impression Training Limited
Would it help to chat?
If it would help to talk to us, just enter your details below and we’ll be in touch as soon as we can.
"*" indicates required fields