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Whether you are setting up a new partnership or have an established partnership business Stewart Accounting Services can assist the Partnership and its partners with all their accounting and tax needs.

A partnership is similar in business structure to a sole trader.  The main difference is that whereas a sole trader is run by one person a partnership is run by two or more people.
The partnership has to submit an annual self assessment tax return and all the partners should be registered for self assessment and submit a tax return each.
Partners are taxed on the profits (or losses) of the partnership according to the pre agreed percentage split of the profits or losses of the partnership business.There are a number of advantages and disadvantages of running your business as a partnership:Advantages

  • Simple – Partnerships are relatively straight forward to set up.
  • Financing – with two or more people running the Partnership it may be easier to raise capital or borrow money.
  • Two better than One – the partnership will benefit from the time, experience, skills, finance and knowledge of two or more owners.

Disadvantages

  • Joint and Several Liability – the partners are not only liable for their own business actions but all the business actions of all other partners.
  • Unlimited Liability – like a sole trader a partner has unlimited liability.  This can be avoided by setting up a limited liability partnership.
  • Tax – as with a sole trader partners are taxed on their proportion of the profits of the business and are also taxed under class 4 NIC.
  • Control – disagreements may arise in the running of the business which may result in the decision making process being longer.

Contact Stewart Accounting to discuss how we can help with your partnership business.

 

We have been pleased with the service that Stewart Accounting has provided since we engaged them. Our previous accountant we never saw and we didn’t know if were doing things correctly or not.

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