If two or more people wish to go into business together, but without having the extra disclosures necessary with a limited company then a partnership offers a simple way to get started, similar in many ways to a sole trader as in essence a Partnership is a group of Sole Traders trading together. A partnership has no legal status, as a Limited Company would, but we advise all partnerships to have a Partnership Agreement which acts like a constitution of the Partnership
The Partnership will have to prepare Partnership Accounts which will show each partners share of profits. These Partnership Accounts will then be used to complete the annual Partnership Tax Return. The Partnership Accounts will also include each Partners share of the profits for tax purposes. Each partner will also have to add a short partnership tax return to their own personal tax return showing their share of profits.
The Partnership Accounts will be prepared using the generally accepted accounting practices and here at Keith Rogers Accountants we have great experience of preparing accounts using UK generally accepted accounting practices. As good Tax Accountants we will all the expenses possible within the rules and make sure you pay the correct amount of tax and no more at the correct time and as far in the future as possible.