Limited Liability Partnerships

Limited Liability Partnerships (LLPs) are a new and an added value layer of tax planning to our arsenal.  Unlike sole traders and partnerships we now have the fantastic concept of limited liability.

The “limited liability” in a limited liability partnership is exactly the same as it is in a limited company.  

However the “tax structure” of a limited liability partnership is exactly the same as it is for a partnership.

LLPs have to be registered with Companies House, and the registration fee, if created directly, is as low as £20.  If you are not sure of the whole process, we have a formation service to which includes advice, the registration, and a draft partnership agreement all for £120. See Partnerships for more information.

Tax Saving Opportunity

There are some circumstances, for example, expanding businesses or new businesses, where we can effectively shelter the profits for the first five years from tax.

The best way of finding out how this works is a face to face meeting, or a telephone meeting with a broadband connection at hand.

Whilst this saving can be achieved with sole traders and partnerships, the LLP is our platform of choice. The main reason for this is the limited liability aspect of this setup.

Due Diligence

Each partner will have to inform Inland Revenue within 3 months of business starting so you won't be charged a £100 penalty.

Each partner will also need to register for National Insurance as a self employed trader.  Registration forms and can be found online on the HMRC site (www.hmrc.gov.uk).

Please call us for a free initial consultation on 020 8241 3000 or email: gds@gordonsknight.co.uk.