In Scotland the partnership (or firm) is a legal personality distinct from the persons who are the partners.
- The profit after expenses is all yours
- You are responsible for your own income tax
- The partnership is a separate legal person and can be sued in its own right.
- The reporting requirements are less onerous than those for a Limited Company
- You are responsible for your share of all business losses
- You can still be liable for partnership debts
- The partnership property, for example land and buildings, is owned by all the partners jointly
Choose a Nominated Partner, who is responsible for
- keeping business records and managing tax returns.
- Registering the firm for partnership
- Registering the firm for VAT if sales in the year are anticipated to be more than the prevailing threshold (refer to Some Information page for current registration level)
- Registering with HMRC as an employer, if you intend to employ staff
- Each partner must register with HMRC for self employment and Class 2 NIC as soon as practicable after starting your business. Late registration can result in a penalty charge.
We will attend to all these registrations for you, leaving you free to concentrate on running your business.
The Nominated Partner must
- submit a Partnership Self Assessment tax return every year
- submit a VAT return every 3 months and pay the VAT owed, if the firm is VAT registered.
- submit a Full Payment Submission before every payroll payment if the firm employs staff.
Each individual partner must
- Submit their own Self Assessment tax return and pay tax and Class 4 National Insurance on their share of the partnership profits
We provide a comprehensive service to deal with all these matters for you.