Archimedia Accounts is dedicated to helping self-employed businesses thrive in Nottingham. We have extensive experience in providing partnership accounting services aimed at greater profitability and personal wealth.
How does a partnership agreement work?
A partnership is owned by more than one owner (two or more people). There are various different types of partnerships, all of which must be registered with HMRC.
- General partnership: This is where the partners share responsibility for the running and profits of a business. When trading as a general partnership, as opposed to trading as a limited company, each of the business partners is personally responsible for the business, meaning that they are personally liable for any debts or legal action incurred by the business.
- Limited partnership: This involves having at least one general partner (or ‘nominated partner’) whose responsibility is to keep business records, manage the partnership’s tax return, and pay tax. The limited partner’s liability is restricted to the amount they invest in the business. All other partners must be involved in any big decision-making process.
- Limited Liability Partnership (LLP): LLPs are similar to limited companies and must be registered to Companies House. The partners are separate legal entities from the business, meaning that they have no personal liability for debts.
To introduce new partners, the old partnership must be dissolved and reformed. Removing partners is possible; they can either leave voluntarily or be forced out by other partners. It is important to draw up a partnership agreement that clarifies the business structure and identifies each partner’s roles and responsibilities to avoid future problems.
Do partnerships need accountants?
Business partnerships are complicated structures, and so there are plenty of benefits to using professional partnership accounting services.
The company accounts and tax affairs of a partnership can get very complicated. Keeping up with HMRC’s ever-changing accounting and tax compliance laws is difficult and time-consuming.
Our partnership accountancy services include accounts preparation and submitting your partnership tax return. Archimedia can also help with your personal tax returns (e.g. income tax self-assessment) to save you time and avoid any penalties.
2. Tax Saving
An accountant can save you and your partnership business money by reducing your tax liability. This could be through various tax reliefs and claiming allowable business expenses. In our eyes, your accountant should save you 2-3 times as much tax as you pay them.
3. Raising capital
Partnership accountants can help you to raise capital to develop your business and also provide advice on how to borrow money to see you through any financial difficulties.
Financial organisation and tax advice for Partnerships
We can help your partnership at every stage to ensure you establish robust accounting processes and retain as much of your profits as possible.
The beginning – structuring your business correctly to save tax
We can offer business partnership planning advice and help you weigh up the pros and cons of each type of business structure. This can give you the comfort of knowing that you have chosen the right business structure for future success.
We can manage all of your tax obligations and bookkeeping to give you the time you need to get your new venture off of the ground.
Once established – compliance and ongoing tax savings
We are not just accountants; we are commercially-minded business people who want to save you as much tax as possible. As your dedicated partnership accountant, we will seek to get a thorough understanding of your business and personal tax situation to help you save as much tax as possible going forwards.
Tax planning is detailed, complex and unique for each business – a standard tax planning checklist will not benefit your business. Our accountants will conduct several tax reviews with you throughout the year. While this takes time, doing the job properly could result in tax savings of £1,000s or even £10,000s each year.
The future – helping you increase your wealth
What sets Archimedia Accounts apart is that we know how to manage our personal wealth and create passive income. We are experts in small businesses and are commercially minded. If your aim is to scale your partnership business, save tax, and increase your wealth, then we can help you from personal experience.
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Our partnership accounting services
At Archimedia, we can offer your Partnership advice, planning, bookkeeping and partnership accounting services in and around Nottingham.
- Partnership accounts
- Advice on the pros and cons of continuing as a partnership, so you are aware of the advantages but also the business partnership disadvantages
- Preparation and submission of the partnership tax return
At Archimedia Accounts, our partnership accounting services will ensure you remain fully compliant with HMRC, save as much tax as possible and then help you on your journey to commercial and personal financial success.
Contact Archimedia Accounts for Business Partnership Advice today
If you are considering forming a business partnership and need some advice, give our team a call on 0115 922 6282 to book a one-hour complimentary meeting. We look forward to hearing from you!