Partnership

There are three types of partnership:

  • ordinary’ partnerships
  • limited partnerships
  • limited liability partnerships (LLPs)

Common features of partnership;

two or more persons  responsible (the partners )  for business management.

  • There can be  partnership in between  individual or another business, eg a limited company or another partnership
  • the partnership must keep records showing business income and expenses
  • a nominated partner must also send HMRC a partnership return
  • each partner is personally responsible for paying tax on their share of the profits and gains, and for their National Insurance contributions.
  • each partner must register for Self Assessment with HM Revenue & Customs (HMRC) and complete an annual tax return
  • in  partnership partners  raise money for the business out of their own assets and/or with loans
  • The partnership can have employees.