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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3655
Experience:  Solicitors 2 years plus PQE
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If I form a general partnership covered by a partnership

Resolved Question:

Hi. If I form a general partnership covered by a partnership agreement do we have to register rhe partnership with HMRC for the partnership agreement to be valid?With regard to that partnership agreement, do all three partners need to reside in UK? One partner doesnt and doesnt have an HMRC UTR. Can someone act as their agent?IS it easy to change partners names, is it a matter of just informing HMRC?Thanks
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
A general partnership is formed if you comply with the provisions of the Partnership Act 1891. Two or more people who share the assets, profits and liabilities of a business.
Each partner would still have to draw money, whether it be from salary or partnership profits and then make their personal tax return. The partnership would have its own accounts. A partnership does not pay corporation tax. A partnership nominates one partner to go and register the partnership through the HMRC -the nominated partner will declare to the HMRC who the other partners are and what the name of the partnership is. The partner that does not have a UTR will need to obtain one eventually. The nominated partner sends a partnership tax return to HMRC as well when requested by HMRC.
You can include a mechanism in your partnership agreement for adding and removing partners as your circumstances may require - if the partners change you will need to inform HMRC.
Can I assist you any further?
Kind regards
AJ
Customer: replied 1 year ago.
thanks.so for the partnership agreement to be valid it has to be registered with HMRC?
Expert:  Alex J. replied 1 year ago.
Hi
Thank you.
The partnership agreement will still be valid if you dont register it, but if the partnership is trading in the UK and the partners are UK tax resident, then they are legally obliged to register it with the HMRC.
Kind regards
AJ
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