You must contact the Inland Revenue and inform them that your new partnership exists. You’ll then be sent a partnership return, which you must complete. This will include a partnership statement, which shows how profits and losses have been divided amongst the partners.
Although usually only one member of the partnership is nominated to complete the partnership return, every partner is liable in the event of any penalty if the form is submitted late, or there is a false declaration etc.
Similar to a sole trader, most partners will pay tax as a self-employed person, which means they will be responsible for paying their own national insurance contributions.
The procedure for a partner registering with the Inland Revenue is the same as for that as a sole trader.
Likewise if your partnership employs staff, you as employers are responsible for collecting your employee’s tax and national insurance contributions on behalf of the Inland Revenue.
Related posts:
- How to Set Yourself Up as a Sole Trader (2) 3. National Insurance You will also be required to pay...
- How to Set Yourself Up as a Sole Trader Setting yourself up as sole trader is relatively straightforward. 1....
- Build a Partnership Business Type This is a similar identity to that of a sole...
- Business Partnership and Its Types Yes. A partnership can be for two or more people,...
- Must Know Deed of Partnership A deed of partnership is a legally binding agreement between...