Every LLP and each individual member must make self-assessment tax returns every year to HM Revenue & Customs (HMRC).
For individual members this will be in the form of a personal tax return. For the LLP itself, it will be a partnership tax return which, as well as showing the income and expenditure for the tax year, will include a partnership statement showing how any profits and losses have been divided amongst the members.
You must also file a number of documents with Companies House following your Accounting Reference Date (ARD). This date is usually the last day of the month your LLP was incorporated and occurs each year; it is the date that your financial year ends where the accounts are to be made up to.
The following documents must be delivered:
- A profit and loss account
- A balance sheet signed by a designated member
- An auditors report signed by the auditor (unless exempt)
- Notes to the accounts
- Group accounts (if appropriate)
Where eligible, LLPs may prepare and file abbreviated accounts. Certain LLPs with a turnover of less than £5.6 million and assets of less than £2.8 million can claim exemption from audit.
LLPs normally have 10 months from the ARD (or 9 months if the period starts on or after 6 April 2008) to return the above documentation to Companies House.
If you are filing your first set of accounts and they cover a period of more than 12 months, they must be delivered within 22 months of the date of incorporation (or 21 months if the financial period starts on or after 6 April 2008) or 3 months from the ARD, whichever is longer.
Every LLP must also deliver an annual return to Companies House at least once every 12 months. You have 28 days from the date to which the return is ‘made up’ to do this.
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.