fbpx

How to Register a Partnership

A Partnership is a UK business structure allows two or more people to co-own a business.

Follow these steps to guide you through setting up your Partnership.

Check Forming a Partnership is Right for You

In a Partnership you and your partner share in the profits (or losses) of your joint business.

There are other options available such as:

  • Self-employed or sole trader;
  • Limited Company;
  • Limited Liability Partnerships.

How to Choose the Right Legal Structure for Your New Business

When Do You Need to Register

You need to register your Partnership by the 5th October following the end of the tax year you started trading.

A tax year runs from 6 April to 5 April each year.

So if you started your new business on 1 February 2020, you’ll need to register your partnership with HMRC by 5th October 2020.

Choose a Name

There are some rules you need to follow when it comes to choosing a name for your partnership.

You can choose any name you like but you cannot use:

  • Anything explicit;
  • Words like LLP or Limited as those are reserved for business that register with Companies House.

I’ve put together a list of Do’s and Don’ts when it comes to naming your business.

Choose a Nominated Partner

Every partnership needs to elect a nominated partner who will be responsible for ensuring the Partnership Tax Return is filed, keeping business records and will act as the point of contact for HMRC.

Register with HMRC

You can register your Partnership online on the HMRC website.

In addition to registering the business, each Partner in the business must register as self-employed (or sole trader) because they will need to fill out a tax return each year showing their portion of any profit or losses, and paying any tax due on this.

How to Register as Self-Employed

New Here? These are my most popular resources:

  • The Ultimate Bookkeeping Spreadsheet – Organise your money, track the numbers that matter and stay on top of your cash;
  • Freebies – templates, spreadsheets, calculators and cheat sheets. Here you’ll find all my freebies for the self-employed community, all in one place.
  • Sole Trader or Limited Company? – Download my free calculator to check which business structure would help you to pay less tax;
  • FREE Business Expenses Cheatsheet – Check what you can and can’t claim as an expense against your taxes.
  • 6 Core Elements of Self-Employment Taxes – Confused by taxes? Worried you’re missing something when it comes to tax allowances and reliefs? These easy to follow 6 mini-guides will have you on top of the tax side of things in no time at all.
Anita Forrest
About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of www.goselfemployed.co - a UK small business finance blog where she shares help and advice with the self-employed community to make topics like registering a business, bookkeeping and taxes easy to understand.