FID Trust International

When you set up your Business Partnership you automatically need to choose one of your partners as a Nominated Partner and this is a statutory requirement.

The ‘nominated partner’ is responsible for managing the partnership’s tax returns and keeping business records.

If you choose yourself to be a 'nominated partner' you are obligated to:

  1. Register your partnership and its members with HM Revenue and Customs (HMRC). A partner doesn’t have to be an actual person. For example, a limited company counts as a ‘legal person’ and can also be a partner.
  2. Prepare a Partnership tax return. As the nominated partner you’ll get a letter from HM Revenue and Customs (HMRC) in April or May telling you to send a partnership tax return. You also must let each partner know their share of the profits and losses for their Self-Assessment tax returns. All partners can be charged a penalty if the partnership tax return is late.
  3. You need to keep your records for 4 years after 31 January following the end of the tax year.

Also Limited Partnership is obligated to tell HM Revenue and Customs (HMRC) about certain changes to your partnership. It is:

1). If a partner joins or leaves

Any partner joining your partnership must register for Self-Assessment.

You don’t need to tell HMRC a partner is joining unless the partnership is VAT-registered.

If your partnership is VAT-registered you must tell HMRC when a partner joins or leaves within 30 days - you can be fined if you don’t. Download and fill in form VAT 2.

When a partner leaves they still need to submit a Self Assessment tax return for the year they leave.

You must record the changes in the partnership tax return and in each partner’s Self-Assessment return.

2). If a partner dies or is made bankrupt

If there are 2 partners:

  1. the partnership will be automatically dissolved,
  2. the remaining partner must re-register for Self-Assessment as a sole trader.

If there are more than 2 partners:

  1. the partnership will be dissolved unless the partnership has agreed otherwise.

If the nominated partner dies, the partnership must nominate another partner and tell HMRC as soon as possible. If they don’t, HMRC will nominate one and write to the partnership. That partner must then complete any outstanding partnership tax return.

3). Changing your name or address

In Self-Assessment you must report changes to your partnership’s name or address.

You must also report changes to the names or addresses of any of the partners.

If you’re VAT-registered you must also report a change within 30 days using VAT online services. You can be fined if you don’t.

Changing the nominated partner

You can change your nominated partner at any time:

  1. as part of your partnership tax return,
  2. by writing to HMRC.

You can appoint an agent to deal with HMRC on your behalf. FID Trust International have all permissions to run accounting and bookkeeping services. If you choose our company we will appoint one of our accountants to be in charge for your accounting, keeping a record of your LP business, be a Nominated Partner in your LP. 

To order this service Please contact us by telephone 0207 439 3400 (0044 207 439 3400 – International) or E-mail us.