Yes, there are two layers. The partnership or LLP files one partnership tax return (SA800) reporting the firm’s profits and how they are shared. Each individual partner then reports their own share on their personal Self Assessment return. E-Tech prepares both from the same set of figures so they always agree.

Every LLP must have at least two designated members. On top of ordinary member duties, designated members are responsible for the LLP’s statutory filings and compliance: delivering annual accounts and the confirmation statement on time, appointing auditors where an audit is required, keeping the registered office and statutory records up to date, notifying Companies House of changes to members and completing Companies House identity verification. Failures can lead to penalties and, in serious cases, personal consequences.

Profit is shared as set out in your LLP agreement, and by default equally if there is no agreement. The LLP itself does not pay income tax on its profits. Each individual member is taxed as self-employed on their allocated share (income tax and Class 4 National Insurance), whether or not they have drawn the money. Corporate members pay corporation tax on their share, and HMRC’s salaried member rules can treat some LLP members as employees. A clear profit sharing agreement and accurate records are essential.

Yes. We handle the LLP name check and Companies House incorporation, guide you on the LLP agreement (working alongside your solicitor where needed), register the LLP and its members with HMRC, and plan the transfer of contracts, assets and bank accounts. We also review the tax impact, such as capital gains, capital allowances and VAT, before you convert so there are no surprises.

Failing to deliver a confirmation statement on time is an offence, and Companies House can take enforcement action against the LLP and its officers, and may ultimately strike the LLP off the register. Late annual accounts also attract automatic penalties, currently from £150 to £1,500 depending on how late they are, doubling if accounts are late in two successive years. If you have already missed a deadline, file as soon as possible and contact us; we track every date for our clients so it doesn’t happen.

Each partner and designated member gets their own secure login with role-based permissions. Designated members can see and approve statutory filings, deadlines and documents such as the LLP agreement. Individual partners can see their own profit share, drawings and personal tax return progress. You can message your dedicated accountant, upload and download documents, and receive email reminders before every deadline.

Not always. Small LLPs that stay within the size thresholds can usually claim exemption from a statutory audit, while larger LLPs must be audited. The thresholds and conditions change from time to time, so we check them every year as part of your accounts preparation and tell you well before year-end if an audit will be required.

Both offer limited liability and are registered at Companies House. A limited company has directors and shareholders and pays corporation tax on profits, while an LLP has members and its profits are taxed directly on those members as self-employed income. LLPs are popular with professional services firms because of their flexible internal structure and profit sharing, while limited companies suit businesses that want to retain profits or issue shares. We can model both options for your practice.