Accountancy services for limited liability partnerships (LLPs) in the United Kingdom.
Limited Liability Partnership Accountant
More Than AccountantsMore Than Accountants Fixed price accountancy services for limited liability partnerships.
Limited liability partnership company accounts, tax returns, VAT returns, bookkeeping services, payroll services and self assessments with a fresh approach, focussed on service levels and proactive advice.
We are best known for our all-inclusive unlimited service plan, which includes all accounting services required by a UK business and more for a fixed monthly fee.
We provide company accounts, tax returns, VAT returns, bookkeeping services, self assessments, payroll services and more to sole traders, limited companies, partnerships, limited liability partnerships, small businesses, contractors and individuals across the UK. We are best known for our all-inclusive unlimited service plan, which includes all accounting services required by a UK business and more for a fixed monthly fee.
More Than Accountants specialises in an accounting package that aims to boost your company’s profitability while lowering your tax bill.
This package includes all of your accounting needs and more. Bookkeeping on a monthly or quarterly basis, company accounts, VAT returns (if applicable), management reports, regular tax reviews and advice, and self-assessments. All completed using Xero accountancy software.
Unlimited Telephone and Email Support
True unlimited accounting package that covers all of your accounting needs with no hidden costs. We guarantee a maximum three-hour response time to your enquiries.
Unlimited telephone & email support
Never any hidden costs
Guaranteed 3 hour response times
What "extras" are included in the fixed monthly fee?
We provide you with quarterly or monthly management reports using Xero Accounting Software and Dext Receipt Reading Technology, allowing you to make informed company business decisions and allowing your accountant to provide you with regular tax guidance.
Monthly or Quarterly Management Reports
Xero & Dext Included
Regular Tax Advice
Switching Accountant - Easy Transition
We quickly take over all of your accounting needs once you give us the green light. If necessary, we will contact your prior accountant on your behalf, with the goal of bringing your accounting and tax situation up to date as quickly as possible.
We contact your current accountant on your behalf.
We make contact with HMRC to get approved as your accountant.
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LLPs are not required to engage a professional accountant to generate their financial statements. Until your partnership is large enough to undergo an audit, there is no legal requirement to have your accounts produced by an accountant.
To form an LLP, it must have at least two members, who can be persons or businesses, and it must be registered with Companies House. For tax purposes, it must also be registered with HMRC. An LLP can own assets, hire workers, and engage into transactions as a separate legal entity.
An LLP, unlike a limited liability company, does not need a memorandum or articles of organisation, directors, or shareholders, and it cannot issue shares. When forming an LLP, it’s a good idea to write a limited liability partnership agreement, just like when forming a general partnership.
A partnership agreement, also known as a deed of partnership or articles of partnership, outlines how the LLP will be operated and how earnings will be distributed. It may also appoint members to manage any legislative responsibilities, such as the LLP’s tax affairs.
An LLP, unlike a limited liability company, does not need a memorandum or articles of organisation, directors, or shareholders, and it cannot issue stock.
The partnership agreement will also specify how much each member has contributed, their positions in the company, who can agree contracts and how, the procedure for members who wish to leave or if a member dies, and what happens if there is a disagreement or something goes wrong. It should also specify how any losses would be shared among the members.
If no agreement is reached, the Limited Liability Partnerships Act of 2000 shall take effect.
An LLP has a higher administrative burden than a general partnership since it must file several documents with Companies House. To form an LLP, the members must first apply to Companies House. Each time a new member joins the LLP or a member leaves, the Registrar of Companies must be notified within 14 days of the event.
Each year, an annual report must be filed that includes the LLP’s contact information as well as a list of its members. If the LLP is large enough, it must also file annual accounts, which may be audited. If the company is small enough to qualify for an exemption, it can file short financial statements.
If an LLP’s members fail to file an annual return and accounts, the Registrar of Companies may believe the business has ceased to exist and strike the LLP off the register. All of the LLP’s assets become HMRCs property when it is struck off.
The LLP must produce accounts and file an LLP Tax Return with HMRC, which should include appropriate extracts from the annual accounts. The LLP, on the other hand, does not pay taxes; instead, the gains of the firm are distributed to the members. If there are capital gains, such as from the sale of a home, they are divided among the members based on their profit share.
The partnership agreement determines the exact profit that each member receives, or they receive equal shares if there is no agreement. Each member must then file a self-assessment tax return detailing all of their earnings, including LLP profits, on which they must pay income tax and National Insurance Contributions (NICs) as self-employed persons.
LLPs with sales of more than £81,000 in a calendar year must also register for VAT. If a member is a corporation, it will pay corporation tax on its portion of the earnings, just as it would on any other form of business income.
Members who are not businesses are taxed in the same way as sole traders, general partners, and employees are. Members get a £10,000 personal allowance on which they do not pay income tax. Then, on the following £31,865 in profits, they pay the basic rate of 20%, the higher rate of 40% on profits between £31,865 and £150,000, and the additional rate of 45 percent on profits exceeding £150,000.
National Insurance Contributions are paid in two ways by members (NICs). Class 2 NICs are paid weekly at £2.75, while Class 4 NICs are determined as part of the self-assessment process and are dependent on the member’s salary.
A member’s self-assessment tax return must be submitted online by the 31st of January following the end of the tax year, which is 5 April (paper tax returns must be submitted three months earlier, by 31 October). Taxes outstanding must be paid in full by the 31st of January.
Members, like self-employed sole traders and general partnership partners, must make income tax payments on account. The payment on account is determined using the earnings from the preceding year. It is feasible to negotiate a reduction with HMRC if a member’s income appears to be significantly lower in the following year.
The advantages and disadvantages of trading through a partnership
LLPs combine the ease of use and flexibility of a general partnership with the restricted liability protection of a limited liability corporation. There are no company taxes to pay because all profits go directly to the members. An LLP’s internal agreements and management are confidential, and it has far more flexibility than a corporation.
Because the members’ liability is restricted to the amount they invested, they are not individually accountable for debts or the poor judgments of their business associates like general partners or sole traders. In addition, an LLP might raise funds for expansion by bringing on new members.
However, the administrative burden of administering an LLP is only marginally less than that of running a corporation. Along with tax returns, an annual return and accounts must be completed, and business documents must be retained. Each time a member quits or joins, Companies House must be notified.
When the LLP’s profits reach a particular level, its members will begin to pay higher and additional rate income tax, as well as NICs, on their earnings. A limited company can provide a more tax-efficient structure for extremely profitable firms in certain circumstances.
