Partnership Business

What should you know?
What HDH Accountants can help with

Understanding Business Partnership Accounts

If you have started a business or are thinking about starting one, then you will need to decide on a business structure. You can choose to create a limited company, work as a sole trader or a partnership. Each business structure varies, especially when it comes to accounts and the bookkeeping. Sole trader owners are classed as self-employed, therefore they have their own set of tax rules and regulations to adhere to.

Business Partnership Accounts

HDH Accountants would like to work as your accountants for your business partnership to help ensure you are compliant with your accounts and tax returns. In a business partnership, both you and your partner (or partners) personally share responsibility for your business.

This includes but is not limited to: Any losses your business makes and cost for things you purchase for your business, such as stock or equipment.

If you are a partner in a partnership, you will take a share of the business’s profits, and pay tax and National Insurance on your share. HDH Accountants can prepare the partnership year end documents, provide you with statutory accounts and all the tax returns needed, so you don’t have to worry about staying compliant. We will notify you about what tax and National Insurance is owed also when/how to pay HMRC.

Key things to know

Does a Partnership Business need to file their accounts with HMRC?

Partnerships aren’t actually taxed. All income received by the partnership must be shared at the agreed rate between the partners. The partners are then taxed on their share of the allocated profits.

Partnerships can be divided as per your partnership agreement and all partners will have their own percentage of the income generating by the business.

Each individual’s share of the partnership profits is taxed at the normal rate of tax and in the band that corresponds to each partners income. 

Does a Partnership Business need an accountant?

Whilst there is no obligation to employ the services of an accountant, there are many benefits to doing so. You would have to have one nominated partner doing the taxes and filling in all the forms and fill in the 
SA800 which has eight pages that every partnership needs to fill out. There are more forms required to prove gained income through banks etc and the disposal of chargeable assets.

Additional Funding Opportunities

There are many tax incentives, grants and funding initiatives available to UK businesses. Whether you’re a start-up or an established business, we can provide you with the crucial advice that will help you access additional cash to help your business grow. We are partnered with Counting King, an industry leading firm, that specialise in tax incentives that can support you with accessing additional funding support. Get in touch to find out more about what cash is available to you today! 

Partnership Accounts

Overview

In a business partnership, you and your partner (or partners) personally share responsibility for your business. Including: All costs for running the business and any losses you make as well as profits.

Overview

In a business partnership, you and your partner (or partners) personally share responsibility for your business. Including: All costs for running the business and any losses you make as well as profits.

Accounts

Firstly, accounts should be maintained to meet the businesses accounting and tax filing obligations. Partners share the business’s profits, and each partner pays tax on their share.

Accounts

Firstly, accounts should be maintained to meet the businesses accounting and tax filing obligations. Partners share the business’s profits, and each partner pays tax on their share.

Data Driven

Accurate and timely record keeping allow the business owner to make data driven decisions, the ‘nominated partner’ is responsible for managing the partnership’s tax returns and keeping business records.

Data Driven

Accurate and timely record keeping allow the business owner to make data driven decisions, the ‘nominated partner’ is responsible for managing the partnership’s tax returns and keeping business records.

As a partner you are still responsible for your own taxes. Contact us:

Submit Before The 31st January

Self Assessment Tax Returns (SATR’s) are a necessary document which is required to be submitted to HMRC on an annual basis if you are in receipt of income which is not categorised by PAYE.

SATR’s are complicated and require detailed information in order to be completed and submitted compliantly. If these aren’t submitted on time or correctly it can be quite a stressful and costly time as HMRC impose multiple fines.

With updates to tax allowances and legislation each year it is always better to get professional advice to see what incentives and allowances you are eligible for to reduce your tax liability each year.

We provide a complete personal tax service for sole traders, partnerships, directors of limited companies and private individuals.

If you are unsure if you are required to complete a self-assessment tax return or what information should be submitted, then please contact us today.

Helpful links:

Quick links to our services

Get In Touch Today

We would love to give you more information about our monthly packages

Find out more about:

  • The list of services we offer
  • How quickly we can have you set up 
  • A free consultation to go through all of your requirements