Knowledge

Running a partnership

Partners can run their partnership themselves or delegate it to the employees of their partnership. It is also perfectly possible to have so-called “sleeping partners” who contribute financially to the partnership without being involved in daily business.

A deed of partnership may lay out the details on how to manage the business and what duties each partner has to perform. Generally, there are, however, no special restrictions or regulations to comply with while operating a partnership.

Partnerships have the right to employ people under the same conditions as any other business or company. In practice, this means that a partnership has to:

  • Register with HMRC as an employer before taking someone on.
  • Operate the PAYE system in order to deduct tax and NICs from employees’ salaries and wages.

If a partnership intends to work as a contractor or/and subcontractor in the construction business, it must register with HM Revenue & Customs (HMRC) for the Construction Industry Scheme (CIS).

 

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.