Partnerships / LLPs

Partnerships at Clear Cut Accounts Accounting and Bookkeeping WimborneIf you are a partnership or LLP, the records you must keep, and the legal returns that you must make are usually straightforward. But sometimes as Partners you can just not know which direction to go!

At Clear Cut Accounts we realise that you should be spending your time running your business and making money. By showing you the best way to attack your accounts and finances, we can greatly reduce the time you take on paperwork - freeing you up to spend more time making money, or even taking time off!

From day one - we will listen to you and set up the kind of system you are comfortable with - either computer or paper based.

Why Get Us Involved?

The HMRC have complex rules and regulations, but there are many allowable items that partnerships can claim on their return to reduce the tax they pay. There are also lots of items that are not allowed. We know the rules, and we can ensure that you claim for all your allowable expenses, to minimise the tax you pay.

We also realise that partnerships can run into difficulties when everyone wants different things or has different goals. By providing impartial advice and guidance, we can often unite the different visions partners have - reducing friction and disagreements and pulling you together so that we all move forward in the same direction. Formalising one set of rules and procedures can also help to bring into synch all of the partners' approaches, so that you can start to run the business in the same way.

What Services Do We Offer?

  • We can do the whole hog - take all your records and receipts, create a 'set of books' for you, and do a Self Assessment Return for the Partnership, and then one for each partner, filing them online for you as your agent; or
  • We can set you up to do some of your accounts yourself. Our tailor-made system will take a minimal amount of your time, but will give you regular data to help you run and grow your business. Depending on your preference, we can provide paper schedules, spreadsheets or easy-to-use accounting software. Having a new system to your books can seem daunting - but it can also revolutionise the way you run your business! It will also reduce the fees we charge you for future returns - as a lot of the preparation work will have been completed.

Whichever option you choose, we will explain what your figures mean, what you can do to improve profit and minimise the tax you pay, and even offer advice on how to grow and develop the company in the future. We'll even talk to the HMRC on your behalf!

Our rates are shown on the What We Charge page.

Additional Services:

Set up / submission of returns for VAT; Set up / submission of returns for CIS; Providing regular Business Information - P&L, Balance Sheet, Customer Information, Supplier Information, Profitability.

 

HMRC & Record Keeping

1. What is a Partnership? What is a LLP?

Partnerships are the same as Sole Traders, except the responsibility and decision making is shared amongst 2 or more partners. As for a Sole Trader, there is no limit to the liability the partnership may have.

An LLP or Limited Liability Partnership, is as per a normal partnership, but liability is limited to the amount of money the partners have invested in the business / any personal guarantees. This means that partners have some protection if the business runs into trouble.

2. What Returns Do I Need to File as a Partnership?

You will be sent Self Assessment Tax returns by the HMRC in May / June (unless you have a different year end to the tax year). You will receive one for the Partnership, and one for each of the partners.

You have until 30th Sept to file it by post or 31st January the following year to file it online. Late returns are charged a penalty of £100. Late payment of tax will be charged interest.

You do not have to complete formal yearly accounts, but it is recommended that you prepare regular reports to monitor your business's performance, and make the splitting of profits amongst the partners straight-forward.

LLPs also need to register and file accounts with Companies House

3. What Records Do I Need to Keep?

Records are as per a Sole Trader.

4. What Will Happen If I Don't Keep Accurate Records?

The HMRC can ask to see your records up to 6 years after they are filed.

If they find any missing documents or mistakes they can demand the underpaid tax, and can also charge you heavy penalties.

Further penalties are payable for VAT registered companies.