The deadlines and processes for partnership accounts and tax returns are similar to a sole trader. The main differences are:
One partner should be nominated to represent the partnership. Note that although the partnership submits a tax return, the partnership itself is not subject to income tax. It is the partners that are taxed on their shares of the profit.
Nearly all subcontractors engaged in construction are covered by the Construction Industry Scheme (CIS). For this purpose the definition of “construction” is extremely board. For example, landscape gardening on the new build is deemed to be construction. HMRC guidelines provide further details.
The CIS is a method of collecting income tax but does not remove the need to maintain proper financial records. Sub-contractors are sole traders (or, less often, partners or limited companies) and must submit tax returns like any other business. Apart from avoiding penalty charges from HMRC, there is often a big incentive for submitting the returns; if your earnings before CIS deductions are less than £25,000, you are probably due a significant tax rebate.
You can complete your accounts and tax returns yourself; you do not have to use an accountant. Whilst you will save some money this can be a false economy. An accountant will provide some very real benefits. They will:
This is the same pricing as Sole Traders, except extra charges for 2 or more partners.
Avoid the stress of weekly bookkeeping. Track your cashflow and Finances through monthly reports. Manage your tax liabilities in real-time so that you know what funds are available to withdraw and what should be set aside for tax.
Easily create and send invoices, add new customers, and manage expenses, whilst we do all your bookkeeping for you.
Full visibility of exactly what’s coming in and going out of your business 24/7 from any device, anywhere, anytime.
Our dedicated team of business growth experts can advise you on how to meet your business objectives in the most tax efficient way that legislation allows, as well as offering ongoing accountancy support and guidance.
Total peace of mind that your accounts are safe and secure online and easily accessible at any time.