Partnership Tax Returns

Partnership Tax Returns

The tax law and compliance requirements for partnerships can be quite complex. There are lots of regulations to consider and the best approach is to be proactive with receiving the right advice, so that you and your partner/s can structure and operate the partnership in the most tax efficient way possible.

Whether you're setting up a new or joining an existing partnership, we can help you to navigate the complexities of partnerships and ensure that you or your business is fully compliant with HMRC.

'Give your business the best chance of success by taking a proactive approach towards your business finances'

UNDERSTANDING THE TAXATION OF UK PARTNERSHIPS

A partnership generally exists where two or more individuals work together in business with a common view to making a profit.

The arrangement is not that of an employer/employee, rather all of the individuals invest in the business and share in the overall responsibility for the business.

If the business does well, the individuals will each have a share in the profits, and equally if the business does poorly they will share the losses.

Partnerships are by law required to register with HM Revenue and Customs and to submit annual partnership returns by the normal self-assessment deadline. Failure to do so can result in penalties being imposed by the Revenue.

The individual partners are also required to register for self-assessment and to submit their annual tax returns by the normal self-assessment deadline. Failure to do so will result in additional penalties and interest being charged.

FAQ's

It is highly recommended that a partnership agreement is in place. This will lay out the terms and conditions of how the partnership should be governed and will ensure that the partners have a clear understanding of how the partnership works.

The partnership agreement should cover most things including how profits and losses are to be split, the conduct of partners, admission of partners, retiring partners, ownership of assets and how to resolve disputes.

If there is a difference in opinion somewhere down the line, the partners can always refer to the partnership agreement for guidance.

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HOW CAN WE HELP?

The tax law and compliance requirements for partnerships can be quite complicated. If you are considering setting up a new partnership or joining an existing partnership, we suggest that you contact us as soon as possible.

We can help you to navigate the complexities of partnerships and ensure that you or your business is fully compliant with HMRC.

Our Comprehensive Service Includes the Following:

Registering your partnership and individual partners with HM Revenue & Customs.

Reviewing your partnership agreement and offering expert advice and feedback.

Analysing your year-end accounts and making the relevant adjustments for tax, in line with current legislation.

Optimising the use of capital allowances.

Preparing and submitting the individual partners annual self-assessment tax returns.

Preparing and submitting your annual partnership tax return.

Calculating and advising on partner balancing payments or tax repayments and, where applicable, any payments on account due by the deadlines.

Allocating partnership losses in a tax-efficient manner.

Providing effective tax planning for current and future tax years.

Offering expert advice on all partnership related matters.

MW TAX