If 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.
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.
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.
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.
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
Records are as per a Sole Trader.
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.