Partnerships

A partnership is formed when two or more individuals operate a business together.

Partnerships are becoming less common because they suffer from several disadvantages:

• they are transparent for tax purposes and can therefore result in higher tax liabilities for the individual partners;
• they do not offer protection for each individual partner, who will be jointly and severally liable for all debts of the partnership.

As a consequence, many partnership businesses have been incorporated into limited companies or limited liability partnerships, depending on their particular circumstances and we have assisted in this process.

Such changes may not suit all partnership businesses. Where this is the case, we will continue to advise and assist those businesses in dealing with their compliance obligations, such as annual accounts, VAT Returns, partnership and personal tax returns. We also continue to assist partnership clients to maximise tax efficiency and opportunities as far as possible within their existing business structures.