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Partnership Registrations


In a partnership, two or more people share the risks, costs and responsibilities of being in business. Each partner is self-employed and takes a share of the profits. Usually, each partner shares in the decision-making and is personally responsible for any debts that the business runs up.

Unlike a limited company, a partnership has no legal existence distinct from the partners themselves. If one of the partners resigns, dies or goes bankrupt, the partnership must be dissolved – although the business can still continue.

A partnership is a relatively simple and flexible way for two or more people to own and run a business together. However, partners do not enjoy any protection if the business fails.

Set-up

  • Each partner needs to register as self-employed.
  • It’s a good idea to draw up a written agreement between the partners. For further advice, consult an accountant or solicitor.

Management and raising finance

  • Partners themselves usually manage the business, though they can delegate responsibilities to employees.
  • Partners raise money for the business out of their own assets, and/or with loans.
  • It’s possible to have ‘sleeping’ partners who contribute money to the business but are not involved in running it.

Records and accounts

  • The partnership itself and each individual partner must make annual self-assessment returns to HM Revenue & Customs (HMRC).
  • The partnership must keep records showing business income and expenses.

Profits

  • Each partner takes a share of the profits.

Tax and National Insurance

  • As partners are self-employed, they are taxed on their share of the profits.
  • Each partner also needs to pay Class 2 and 4 National Insurance contributions. 

Liability

  • Creditors can claim a partner’s personal assets to pay off any debts – even those debts caused by other partners.
  • In England, Wales and Northern Ireland, partners are jointly liable for debts owed by the partnership and so are equally responsible for paying off the whole debt. They are not severally liable, which would mean each partner is responsible for paying off the entire debt. Partners in Scotland are both jointly and severally liable.

However, if a partner leaves the partnership, the remaining partners may be liable for the entire debt of the partnership. Also, a creditor may choose to pursue any of the partners for the full debt owed in the case of insolvency.

For £19.99 Davenports can register your partnership with HM Revenue & Customs, within a matter of working days you will receive your registration confirmation, to proceed, simply complete the form below.

encrypted Partnership Registrations

Personal Details
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Contact details
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Your present circumstances
About your business
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  3. Your business name must only contain letters (A-Z) or numbers (0-9)
Business contact details
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Business Partners
  1. If you are joining an existing partnership what is the Partnership Unique Taxpayer Reference (UTR).
  3. To help us register your self employment successfully, please give the name and National Insurance Number (NINO) of one of your business partners:
Work details
Accounting and Taxation Services
  1. Whilst we register you as self-employed, Davenports can also look after your other accounting and taxation needs. Why not appoint Davenports as your tax agents, there is no obligation to use our services.
Signature and Date
  1. This form will form part of a legal document; as such we require your signature. To do this we will need to create a digital signature, which will be made up of information known mainly to you.
  2. Digitally signing this document will be the same as physically signing that this information is correct
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Payment
  1. We take the security of your personal and financial information very seriously, as such this form will be encrypted once you click submit.
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Billing details
  1. Is the card in your name?
  3. If no, enter the name on the card below
  5. Is the card registered to your home address?
  7. If no, enter the billing address below
 

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