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Wednesday, 07 September 2016 00:00

Newsletter September 2016 | Limited Partnerships – Accounting Records

As you may already know, Limited Partnerships (LPs) are not required to file their financial statements with the UK authorities. This does not mean they are not required to prepare them or not keep records. LPs are required to prepare financial statements and keep records for the following reasons: 

  • They need to file Partnership Self Assessment Tax Return either they have any income or not. By law, all partnerships must send their tax returns and any information the Inland Revenue may ask for – even if the partnership does not owe any tax or have already paid all the tax it owes.
  • The partners of an LP must also prepare and file their Self Assessments with the authorities.

Tax Returns are due for filing by 31 October if filed on paper. If they are filed electronically, they must be submitted by 31 January of the following year. Tax year is always from 6 April to 5 April.

If the Inland Revenue does not receive the tax return by the deadline, then the partnership and its partners are charged with an instant penalty of £100 each. Penalties keep increasing depending on how late the tax return is.       

Considering that we are providing you with our services and our company is regulated by the HM Revenue and Customs, we are obliged by the Anti-Money Laundering Regulations to have in our possession all accounting records in relation to transactions performed within the partnership.  

Consequently, you need to provide us with the following documents from the date the partnership started trading onwards:
1.    Copies of sales and purchases invoices (if any);
2.    Copies of bank statements;
3.    Copies of Loan agreements (if any);
4.    Copies of any contracts (if any);
5.    Fixed Assets register (if any);
6.    Inventory report (if any)

This would be a continues practice, therefore, you shall provide us with all required documents preferably by the end of each month or quarterly.

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