This week we are going to make sure all of our blog followers know every step you need to take to meet your accounting and tax obligations.
Being compliant with tax is a vital part of running a business and going self-employed. Contrary to popular belief, filing a tax return doesn’t have to be daunting. If you follow our expert advice filing your tax return will be quick, simple and easy.
Yesterday, we explain the details of a sole trader filing a tax return. Today we are going to explain the details of taxes when filing under a partnership.
A partner ship can fall into one of three categories: a partnership, a Limited Liability Partnership, or a limited company with you and your partners as directors.
Whether you are in a partnership or limited partnership, you fall under self-employment status and must file an annual tax return. All of the deadlines remain the same as for a sole trader (listed below).
If your partnership employs staff you are responsible for administering their tax and National Insurance. You must deduct the correct amount of income tax every month, and make a payment to the HMRC by the 19th of the same month or the 22nd if paying electronically.
If the average monthly totals are below a listed threshold you have the option of paying quarterly.
Key dates for a partnership
The tax year ends on the 5th April each year.
· All Paper tax returns must be filed to the HMRC by 31st October
· All online returns and payments must be sent to the HMRC by 31st January the following year.