I have a client who has a ltd company. His former accountants (big firm) have advised him on his corp structure and he wants to add a LLP with existing Ltd as one of the partners. Not my area of expertise. Am happy to follow instructions on this one.
Im doing to Ltd Co book keeping, tax , statutory accounts etc.
He's asked me to do the LLP. Is it as simple as Ltd co accounts + partnership tax?
This is the problem. I;ve never done one! Please be gentle......
What do I need to know? There is a LLP reporting course by SWAT coming up so was going to enrol myself on that. My VT software can now cope with LLPs apparently.
Tax wise...its just a partnership return isnt it? what do i need to research/;learn to make sure I dont screw up.
Or should I walk away?
Thanks in advance
Sheffield
Replies (3)
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The more I know, the less I like them
I used to deal with a couple of LLPs up until I attended a course at which point I felt like a hypochondriac reading a medical encyclopedia.
I concluded that they may be best left to deal with by people who do so regularly.
is it really that different ?
I have no experience of dealing with LLP's so excuse my ignorance.
Dont you just have to prepare partnership accounts and tax return like any other partnership, but then submit accounts to companies house?
The Ltd company is a partner so will receive a profit share from the LLP. This profit share will form part of the company's turnover and will be taxed in the Ltd company.
Roland195 - could you expand on / highlight some of the difficulties?
I have a vested interest as one of my clients has gone and set up an LLP.
LLPs
Roland195 - could you expand on / highlight some of the difficulties?I have a vested interest as one of my clients has gone and set up an LLP.
LLPS are a [***] mix of a partnership forced into the accounting framework of a company with neither element really being satisfactory.
The main problems I experienced was the classification of capital but the tax is not as simple as it seems especially where insolvency may be involved.