Friendly, Affordable Business Assistance For Partnerships
Create another winning partnership with The Business Bookkeeper
A partnership will be implied by the law when two or more people are in a business relationship together with the view of making a profit. Partnerships are often extensions of the sole trader model. In a business partnership, you’re running a business as a self-employed individual but with the other partners. You share responsibility for the business jointly.
Just like sole traders, partners are jointly and severally responsible for all the debts and obligations of the business without any limit. This includes loss and damages arising from wrongful acts or omissions of your fellow partners. Profits are shared between the partners, but each partner pays tax on their share of the profits.
As a partnership, you are required to choose a ‘nominated partner’ – the partner responsible for managing and keeping financial business records. All partners in a business partnership are required to send HMRC a self-assessment tax return every year. In addition to this, the nominated partner must also submit a partnership self-assessment tax return annually. Ensuring these returns are performed accurately is vital as HMRC will issue penalties for incorrect or late tax returns.
Why not remove the burden of keeping accounts for you and your partners? Partnerships that use outsourced bookkeeping services are free from the pressures of keeping financial records and filing tax returns.