Knowledge

Managing a partnership

Partnership can be either managed by partners themselves or if desirable partners  can delegate it to their employees. There is also an option to have ‘sleeping partners’, such partners usually contribute financially to the partnership but they are not involved in daily business.

A Partnership Agreement may stipulate how to manage the business and what are the duties of each partners. However, generally there are no special regulations or restrictions to comply with while running a partnership.

Partnerships can have employees under the same conditions as any other businesses or companies. If a partnership wants to employ people, it has to register with HMRC as an employer and then operate the PAYE system to deduct tax and NICs.

Partnerships which intend to work as contractors or subcontractors in the construction industry must register for the Construction Industry Scheme with HMRC.

 

Help and advice
We have tried to answer as many common questions as possible on these pages, but if you do require further assistance
or have any other questions then please give us a call on +44 (0) 20 7060 7326 and we will be happy to help.