Ordinary (general) partnerships
In a general partnership, two or more people carry on business together with a view to profit. There is no separate legal entity like a limited company—partners are jointly liable for business obligations unless you adopt a different structure.
Partnerships file a partnership tax return and each partner reports their share of profit on their own Self Assessment. A written partnership agreement is not always mandatory but is strongly advisable for profit shares, capital, exits, and dispute resolution. Good bookkeeping keeps each partner’s position transparent.
Practical focus areas
- Partnership Self Assessment (SA800) and allocation of profits to partners.
- Recording capital accounts, drawings, and any interest on partners’ loans.
- VAT and payroll where the partnership employs people or trades above thresholds.
- Moving to an LLP or limited company when liability or investment needs change.
- Documentation so HMRC reviews and partner discussions stay factual, not argumentative.
Partnerships can be simple on day one and complex after growth. If you want a calm compliance cadence, we are happy to help—start with a discovery call.