Owned and run by more than one person. Very similar structure to Sole Trader, except the business efforts, rewards and debts are shared by more than one person. There is normally a partnership agreement drawn up to state each partner’s involvement and their share of the profits and losses.
There is no legal distinction between the individuals (partners) and the business so the partners are responsible for any debts the business incurs.
Partners and Partnerships need to register with HMRC. Tax and Class 4 NIC declarations are made under each Partners Self-Assessment Tax Return along with a set of the Partnership Trading Accounts. Class 2 NIC is payable weekly. Other factors such as VAT and PAYE may also need to be considered.
We offer a number of services to support partnerships, including formation and registrations and ongoing services such as VAT returns and self-assessment tax returns. Please click here for more information.