Tax matters of an LLP

Tax matters of an LLP

Tax Matters of  the LLp can be complicated some times. It’s easy to assume it’s going to be subjected to Corporation tax which is not the case.

From the start HMRC will set it up as a general Partnership for tax purposes.

The nominated partners will need to complete there own Self Assessment tax returns for the partnership every year. Members of the LLP will also need to complete a Self Assessment tax return and show their share of the profits on it.

Each partner in the LLP must also register separately with HMRC to get their own tax records set up.

LLPs are generally treated the same as general partnerships for tax purposes. Like partnerships, profits are shared among the members of a limited partnership. Individual members – not the limited partnership – pay tax on income or gains. Unlike limited companies, LLPs are not generally liable for Corporation Tax.

The nominated partner will need to complete a Self Assessment tax return for the partnership every year. Members of the LLP will also need to complete a Self Assessment tax return and show their share of the profits on it.

If you need to speak to an LLP Adviser, please contact us on 0208 679 4690 or need more information about  your partnership,  please Visit our  website.