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How do I register a partnership?

If you and one or more other people want to run a business together, an ordinary partnership can be a straightforward business structure. Before you start trading, you’ll need to register the partnership with HM Revenue & Customs (HMRC) and ensure each partner meets their own tax obligations.

This guide explains how to register an ordinary business partnership and the key reporting requirements.

How do I register a partnership?

If you set up an ordinary business partnership, you’ll need to register the partnership with HMRC.

One partner is nominated to deal with the partnership’s tax affairs. This partner is responsible for registering the partnership and managing its reporting obligations with HMRC, although all partners remain jointly responsible for the partnership’s tax affairs.

Each individual partner must also register with HMRC if they need to report their share of the partnership’s profits.

If one of the partners is another organisation, such as a limited company, that organisation must also meet its own tax and reporting obligations.

The registration process is different for limited liability partnerships (LLPs), which must also register with Companies House.

How much does it cost to register a partnership?

There is no fee to register an ordinary business partnership with HMRC.

Tax doesn’t need to be taxing

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What information do I need to provide?

When registering an ordinary partnership with HMRC, you’ll need to provide information about both the partnership and the partners.

This typically includes:

  • the partnership name;
  • the partnership address and contact details (this can be a home address);
  • the trading name and trading address, if these are different from the partnership’s registered details;
  • a brief description of the business activities;
  • the date the partnership started trading (or expects to start trading); and
  • the name and contact details of the nominated partner, who is responsible for dealing with HMRC on behalf of the partnership.

You’ll also need to provide details of each partner so HMRC can record their involvement in the partnership.

Before choosing a partnership name, make sure it complies with HMRC’s naming rules.

How do I update these details if they change?

If there are changes to your partnership, you should tell HMRC as soon as possible. The action you’ll need to take depends on the type of change.

ChangeAction required
A partner joins or leavesTell HMRC about the change. A new partner will need to register with HMRC if they’re required to report their share of the partnership’s profits. A partner leaving the partnership must still report the profits they received up to the date they left. The partnership return and each affected partner’s tax reporting should reflect the change.
A partner dies or is made bankruptThe effect on the partnership depends on the partnership agreement and the number of partners. If the nominated partner can no longer act, another partner should be nominated and HMRC informed as soon as possible. Professional advice is recommended, as the legal and tax implications can be complex.
The partnership’s name, address or contact details changeUpdate the partnership’s details with HMRC. You should also notify HMRC if any partner’s name or address changes.
The nominated partner changesTell HMRC as soon as possible so that correspondence and reporting responsibilities can be transferred to the new nominated partner.
The partnership stops tradingThe nominated partner should notify HMRC that the partnership has ceased trading and ensure that any outstanding partnership reporting obligations are completed for the final period of trading.

 

Do I need to register for tax reporting?

Yes. Both the partnership and the individual partners have tax reporting responsibilities.

The partnership must be registered with HMRC so it can submit its partnership return. When the nominated partner registers the partnership, they also register themselves as the nominated partner for the partnership’s tax affairs.

Each partner must also register with HMRC if they’re required to report their share of the partnership’s profits. Depending on their circumstances, they’ll do this through Self Assessment or, where applicable, Making Tax Digital (MTD) for Income Tax.

You can register online through HMRC’s website.

When do I need to submit my first partnership tax return?

The nominated partner is responsible for ensuring the partnership’s tax return is submitted to HMRC by the relevant deadline.

If the partnership reports through Self Assessment, the deadline is normally 31 January following the end of the tax year for online returns.

The partnership tax return shows the partnership’s total taxable profit (or loss) and how it is allocated between the partners.

The nominated partner should ensure that each partner is told their share of the partnership’s taxable profit or loss so they can meet their own tax reporting obligations. Depending on their circumstances, partners will report this information through Self Assessment or, where applicable, Making Tax Digital (MTD) for Income Tax.