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Accountant for Partnerships
Fixed fee, online accountants for general and family partnerships
A partnership has two sets of tax returns: one for the partnership and one for every partner. We prepare the partnership accounts and return, work out each partner's share, file every partner's Self Assessment and help you plan as the business grows, all for one agreed monthly fee.
- Partnership tax return filed
- Every partner's return included
- Profit shares worked out
- No hidden costs
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In short
What does an accountant for partnerships do?
An accountant for partnerships looks after general partnerships, where two or more people run a business together without registering a company. They prepare the business accounts and the Partnership Tax Return, then work out how profits are shared between the partners. They file each partner's personal Self Assessment, including their share of profit, handle VAT and payroll for the partnership, and advise when partners join or leave or when an LLP or limited company would suit you better.
- Partnership returnAccounts and SA800 filed by the nominated partner
- Partners' returnsEach partner's Self Assessment prepared
- Profit sharesSplit exactly as your agreement says
- ChangesPartners joining, leaving or converting
How partnerships are taxed
The partnership itself doesn't pay Income Tax. Instead, it reports its profit, and each partner is taxed on their own share.
The partnership reports
The nominated partner files the Partnership Tax Return (SA800), showing the total profit and how it's split between the partners.
Each partner declares
Every partner adds their share of profit to their own Self Assessment return, using the partnership pages.
Each partner pays
Partners pay Income Tax and Class 4 National Insurance on their share, along with any payments on account.
See partnership pricing
Our partnership packages are set out clearly on one page, including the returns for every partner.
Partnership tax rules for 2026/27
The figures and deadlines that apply to partnerships and their partners.
Partnership Tax Return
The SA800 is due online by 31 January after the end of the tax year, the same date as each partner's own return.
Personal Allowance
Each partner has their own allowance, so profit shared between partners can be taxed less than the same profit earned by one person.
Class 4 National Insurance
Each partner pays on their share of profit between £12,570 and £50,270, and at 2% above.
VAT registration
The partnership registers once, under its own VAT number, when taxable turnover passes the threshold.
Trading allowance
The £1,000 trading allowance can't be used against a share of partnership profit.
Making Tax Digital
Partnership income isn't yet within Making Tax Digital for Income Tax, although a partner's other business or rental income may be.
Sources: GOV.UK setting up a partnership, GOV.UK Partnership Tax Return, GOV.UK National Insurance.
Is a partnership still right for you?
A general partnership is the simplest way to run a business together, but as it grows, a structure with limited liability may suit you better. Here's how the options compare.
| Question | Partnership | LLP | Limited company |
|---|---|---|---|
| Liability for debts | Partners are personally liable | Usually limited to what members invest | Usually limited to the company |
| Setting up | Register with HMRC | Register with Companies House | Register with Companies House |
| Public accounts | No, figures stay private | Yes, filed at Companies House | Yes, filed at Companies House |
| How profit is taxed | Partners pay Income Tax on their shares | Members pay Income Tax on their shares | Corporation Tax, then tax on salary and dividends |
Already an LLP? See our accountant for LLPs page. Thinking of incorporating? See accountant for limited companies.
What's included for partnerships
Everything the partnership and its partners need, covered by one fixed monthly fee agreed before we start.
Partnership accounts
Year-end accounts showing profit and each partner's capital account.
Partnership and partners' returns
The SA800 and every partner's Self Assessment filed together.
Bookkeeping
Sales, costs and partners' drawings recorded in cloud software.
VAT returns
The partnership's VAT registration and quarterly returns.
Payroll for staff
Payslips, RTI and pensions for the people your partnership employs.
Management accounts
Regular reports so every partner can see how the business is doing.
Partnership questions we help with
Working with partners raises questions a sole trader never faces. These come up most often.
Profit sharing
Profits are split according to your partnership agreement, and each partner pays tax on their own share. We make sure the split is recorded and reported correctly.
Partnership agreement
Without a written agreement, default rules decide how profits are shared and what happens if a partner leaves. We explain the tax effect of your terms.
Partners joining or leaving
A change of partners affects profit shares, capital accounts and sometimes Capital Gains Tax. We update HMRC and adjust the figures.
Family partnerships
Couples and families running a business together can share profits to make use of each person's allowances, where the arrangement reflects the work they do.
Moving to an LLP or company
As a partnership grows, limited liability becomes more important. We compare an LLP and a limited company and handle the change.
Limited liability partnershipsPartners' drawings and capital
Drawings aren't wages and aren't a business expense. We keep each partner's capital and current account clear, so everyone knows where they stand.
Management accountsPartnerships we work with
Professional practices, family businesses and trading partnerships all use us as their partnership accountant.
Fixed fee accountant for partnerships
With several partners, questions come from more than one person. As a fixed fee accountant for partnerships, we agree one monthly price that covers the partnership and every partner's return, so nobody is charged extra for asking.
- One fee for the whole partnership
- Every partner's return included
- Price agreed before we start
Online accountant for partnerships
Partners don't always work in the same place. As an online accountant for partnerships, we share figures through cloud software, so every partner sees the same numbers, and we're available by phone, email or video.
- Shared access for every partner
- Open weekday evenings and Saturdays
- Support anywhere in the UK
A partner joining or leaving?
Changes to a partnership affect profit shares, capital and tax. Talk to us before the change, and we'll make sure HMRC is updated correctly.
Partnership FAQs
Does a partnership need an accountant?
It isn't a legal requirement, but a partnership has more to file than a sole trader: accounts and a Partnership Tax Return, plus a Self Assessment return for every partner. An accountant makes sure the profit split is right and that every return matches, which avoids problems with HMRC.
How is a partnership taxed?
The partnership doesn't pay Income Tax itself. It files a Partnership Tax Return showing its profit and how it's shared. Each partner then pays Income Tax and Class 4 National Insurance on their own share through their personal Self Assessment.
What is the nominated partner?
The nominated partner is the person responsible for managing the partnership's tax returns and records with HMRC. They file the Partnership Tax Return, but every partner still files their own personal return.
Do we need a partnership agreement?
It isn't legally required, but it's strongly recommended. Without one, default rules under the Partnership Act 1890 decide how profits are shared and what happens when a partner leaves, which may not match what you intended.
Can my spouse or partner be in a partnership with me?
Yes. Many couples and families run businesses as partnerships. Sharing profits can make use of each person's Personal Allowance and tax bands, but the profit split should reflect each person's real involvement in the business.
What happens when a partner leaves?
The leaving partner's share of profit stops at their leaving date, their capital account is settled, and HMRC must be told. Depending on the arrangements, there can be Capital Gains Tax to consider. We deal with the figures and the paperwork.
Should we become an LLP or a limited company?
In an ordinary partnership, partners are personally liable for the business's debts. An LLP or limited company usually limits that liability but means publishing accounts at Companies House. The right choice depends on your risks, profits and plans.
How much does an accountant for partnerships cost?
It depends on the number of partners, your turnover, whether you're VAT registered and whether you employ staff. We charge one fixed monthly fee that includes every partner's return, agreed before we start. You can compare packages on our partnership pricing page.
Talk to an accountant for partnerships
Tell us about your partnership and we'll confirm your fixed monthly fee, with no obligation.