What is an LLP
What is LLP (Limited liability Partnerships)?
The partners in an LLP aren’t personally liable for debts the business can’t pay – their liability is limited to the amount of money they invest in the business. Partners’ responsibilities and share of the profits are set out in an LLP agreement. ‘Designated members’ have extra responsibilities.
Tax for Limited liability partnerships.
Every year, the partnership must send a partnership Self Assessment tax return to HM Revenue and Customs (HMRC). All the partners must:
- send a personal Self Assessment tax return every year
- pay Income Tax on their share of the partnership’s profits
- pay National Insurance
- Register your Business for VAT if turnover is above the VAT threshold.
- File VAT return usually quarterly – only if you are VAT registered.
- If you have employees, you should set up a PAYE system to collect income tax and National Insurance contributions.
- File P35 (employer annual return) every year, along with P14, P11 etc. – only if you register for PAYE.
- Other Requirements, depends on individual circumstances such as filing P11D etc.
Record Keeping:
- Keep records of all Sale invoices
- Keep records of all Purchase invoices Expenses – if you are our client, you can request us a list of possible allowable expenses. This will give you an idea of what you can and can’t claim for.
- Keep records of business bank statements
- Keep Record of VAT – if registered
- Keep a record of all the employees & casual labour
- Keep records of business credit card statements if any.
- Keep records of any other information which you believe is relevant
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