Accounting, bookkeeping, Glasgow, UK
The business partnership and individual partners must register for Self Assessment with HM Revenue & Customs (HMRC) and follow certain rules on running and naming the business partnership.
Register for Self Assessment
You’ll need to choose a ‘nominated partner’ - the partner responsible for managing the partnership’s tax returns and keeping business records. The nominated partner must register the partnership and themselves for Self Assessment. The other partners register separately, they usually do this after the partnership is registered.
In a business partnership, you’re running a business as a self-employed individual but all the partners share responsibility for the business. You can share all the profits between the partners and each partner pays tax on their share of the profits.
Both the nominated partner and individual partners are responsible for:
sending their personal Self Assessment tax return every year
paying their Income Tax on their share of the partnership’s profits
paying their National Insurance
any losses the business makes
bills for the business - eg when they buy stock or equipment
The nominated partner must also send the partnership’s tax return.