What is a Limited Liability Partnership?
LLP partners aren’t personally responsible for debts the business can’t pay – their responsibility is limited to the amount of money they invest in the business. Partners’ duties and share of the profits are set out in an LLP agreement. ‘Designated members’ have extra duties.
Tax for Limited liability partnerships.
Every year, the partnership has to compulsory 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 without fail.
· Pay Income Tax on their share of the partnership’s behoof.
· Pay National Insurance
· Register your Business for VAT if income is above the VAT threshold.
· File VAT return normally quarterly – only if you are VAT registered.
· Set up a PAYE system to collect income tax and National Insurance contributions, if you have employees.
· File P35 (employer annual return) each year, along with P14, P11 etc. – solely if you register for PAYE.
· Other needs, depends on individual circumstances such as filing P11D etc.