Partnerships

To file a partnership tax return, each partner of the LLP must complete a self-assessment tax return. This includes reporting their share of the partnership’s profits, losses, and other relevant income or expenses. The partnership tax return (form SA800) should also be completed, providing details of the partnership’s overall income and expenses. These returns are typically filed online through the HM Revenue & Customs (HMRC) website or using appropriate accounting software. 

A partnership must also register for Payroll if it employs an employee and registers for VAT if the turnover exceeds the VAT threshold in the last 12 months. For the 2021/22 tax year, the VAT registration threshold is set at £85,000 but can change each year. Operating a business by themselves, frees the owners from submitting and publishing financial statements. Yet it still requires them to keep track of their revenue and expense, record daily cash flow, file for personal tax returns, and register for national insurance.  

Lanop takes on these responsibilities for you, letting you focus on business development. 

In order to run and sustain a partnership firm in the UK, a business must register for tax return SA800, and every member declaring the partnership’s revenues in their own personal return must register for SA100 and submit accurate records to HMRC. 

Limited liability partnerships (LLPs) are subject to corporation tax in the UK. The LLP itself is responsible for filing and paying corporation tax on its profits. The tax is calculated based on the profits generated by the LLP, and the current corporation tax rate is applicable. 

Lanop Accountants eliminates the need to search for an all-encompassing accountancy firm. Our qualified tax and finance professionals work diligently to make your life simpler by reducing financial stress and making business models more lucrative and efficient in accordance with up-to-date regulations.