LLP Accounts and Tax Returns in Kent

How LLPs are different

A limited liability partnership gives its members limited liability, much like a company, but for tax purposes it is usually treated as a partnership. That means two sets of obligations: the LLP files accounts and a confirmation statement with Companies House, and it also files a partnership tax return with HMRC. The LLP itself does not usually pay tax on its profits. Each member pays income tax and National Insurance on their share through Self Assessment.

LLPs are popular with professional practices, property ventures and businesses run by several owners who want flexibility over how profits are shared.

What we prepare for your LLP

• Statutory accounts in the format required for LLPs, including the disclosures about members' interests and remuneration.
• Filing at Companies House within the same type of deadlines that apply to companies, using smaller entity formats where the LLP qualifies.
• The partnership tax return, including the partnership statement showing each member's share of profit or loss.
• Members' allocations in line with the members' agreement, covering fixed shares, profit shares and any interest on capital.
• Members' personal tax returns, if you would like us to prepare them, through our Self Assessment tax return service.
• The confirmation statement, as LLPs must file one each year too.

Points we look at carefully

LLPs bring some issues that ordinary partnerships and companies do not. Some members may be treated as employees for tax purposes under the salaried member rules, depending on how they are paid and their role in the business. Corporate members, where a company is a member of the LLP, have further rules. Members' capital and current accounts need to be kept clear and agreed with the members each year, especially when someone joins or leaves. We review these points each year rather than assuming last year's position still applies.

How we work

1. We agree a timetable around the LLP's year end and members' tax deadlines.
2. We review your bookkeeping and the members' agreement.
3. We prepare draft accounts and the profit allocation, and go through them with the designated members.
4. Once approved, we file at Companies House and send the partnership return to HMRC.
5. Each member receives the figures they need for their own return.

What we'll need from you

Access to the LLP's accounting records, the current members' agreement, details of members joining or leaving, and drawings and capital introduced by each member.

LLPs across Kent

We work with LLPs throughout Kent, from small professional practices to property joint ventures. If your business is an ordinary partnership rather than an LLP, see our page on partnership accounts and tax returns. If you are considering a change of structure, our restructuring advice compares the options. Get in touch to discuss your LLP.