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In a partnership, two or more individuals join together to run a business. Each of the individual partners has ownership of the business assets and responsibility for liabilities, as well as authority in running the business. The rights, responsibilities and obligations of partners are typically detailed in a partnership agreement. We can advise on the setting up your partnership agreement so both parties are protected.
The principles of taxation that apply to partnership are very similar to those for a self-employed person. For example, you will need to keep accurate records of income and business expenditure. A partnership is required to file an income tax return but typically does not pay income tax; the information from the tax return is combined with the personal income of the partners to determine the overall tax liability.
If you are unsure whether a partnership is right for you, we can help. We can advise you on the potential pitfalls and the benefits of a partnership, or if a limited company is an option you should consider instead.
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