A partnership, is similar to a sole trader but with 2 or more people. A written agreement and profits between the partners are usually shared between the partners according to the agreement. Though profits may be shared unequally, raised liabilities are shared jointly. This is an important note to be well aware in partnership including even if you own 1% of the business, you will still be responsible for 100% of the liability.

What to do when you are in a Partnership.

  • Register as an independent with HMRC within 3 months of your setting up
  • Pay Class 2 National Insurance contribution – HMRC will send you Class 2 National bills every quarter, unless exempted due to small gross.
  • Set up a separate or a particular business account If possible – Ask us if you need to open an account
  • Finish an individual Self-Assessment tax return. You’ll need to fill in the partnership supplementary pages – SA104.
  • The nominated partner must also finish a Partnership Return – SA800 – showing each partner’s share of the profits or losses.

National Insurance (NI).

If you are independent or self-employed as a sole trader or a partner, you need to pay two types of National Insurance:

Class 2 National Insurance that is firmed at £2.85 per week Class 4 National Insurance on your taxable profits at:

9% on the profits betwixt £8,164 and £45,000 Plus, 2% of any profits over £45,000.

If you are an employee, or a Director of your own Limited Company, there are three types of National Insurance to worry you. The most usual rates, unless you are contracted out of the state pension scheme are:

Employees class 1 National Insurance (paid by you) – First £8,164 per year – nothing Next £36,868 – 12% all above 45,032 – 2%

Employers class 1 National Insurance (paid by your company)–

First £8,164 per year – nothing all above that – 13.8%

There are exemptions for startup businesses in some parts of the country for 12 months for up to 10 employees, capped at £5,000 per employee (for earnings paid up to 5 September 2013).

Class 1A National Insurance (paid by your company) – Paid on the advantage of benefits provided by your company – 13.8%.

Our Main Services


SK Accountants & Tax Consultants is one of the most professional and trusted Accounting Firms I ever dealt with in the UK. They are demonstrating a highly professional standards. Attending all inquiries on an immediate basis. Very Excellent customer service team and most importantly the unconditional care and support from the highly experienced accountants team. Thank you so much SK Accountants. I really recommend as the choice number one in United Kingdom

Abdul Rahman Abdul Majeed

Abdul Rahman Abdul Majeed
It has been a very friendly, reliable and a swift experience for me with SKATAX. They have been very professional & efficient throughout the whole process. I would 100% recommend this firm to all businesses. Thank you KS, you and your team is great 🙂

Azhar Khan

Azhar Khan
I have been with This company SK Accountant and Tax Consultant from last 5 years. They are very helpful in managing accounts and in consultancy. I definitely recommend everyone to use there services.

Chaudhry Amir

Chaudhry Amir
I have used SK accountants and tax consultancy services to deal with one of my tax issues which was very intense and required lots of diligent planning. I was so pleased that the SK team was so proactive in dealing with my case, and their work was so detailed, which helped HMRC understand my tax situation. I would recommend SK to all those looking for proactive tax consultants.

Danilov alexey

Danilov alexey
Positive: Professionalism, Quality, Responsiveness I have received consultancy advice from Mohsin Zafar, who has been very professional and helpful and answered many questions that I had. His responses were swift and concise. I recommend this company for consultancy services, they are very knowledgeable

Elena Zekonyte

Elena Zekonyte

We are Bronze Champion Partners with Xero Advisors

SK Accountants is the ‘one-stop-shop’ accountancy &
tax centre, servicing the needs of local SMEs and taxpayers

Get In Touch

Get a Quote