A Partnership is formed when two partners who run a business establish a private proprietorship. Such a business does not have legal personality, that is, the partners are responsible for the company's obligations with all their assets, unless their contract states otherwise.
After establishing a business, the partners should draw up an agreement regulating the company’s structure, the partner’s obligations and dispute resolving methods. Should such an agreement not be written up, all disputes will be regulated by The Partnership Act from 1890.
Each of the partners must register with HM Revenue and Customs as a self-employed person for self-assessment purposes. This involves the obligation to account for each tax year.
Partnerships must be reported to HMRC in order to be assigned a reference number, which will enable tax settlements.
Plan online. It's easy, fast and secure.