UK Limited Liability Partnerships and Taxation

Limited Liability Partnerships and Taxation

Introduction

UK Limited Liability Partnerships were first introduced to UK and non UK residents in 2001. A limited liability partnership (LLP) is formed under the Limited Liability Partnerships Act (LLPA) 2000.  A LLP is similar to a partnership, but the main difference is only the LLP itself is liable for the debts of the partnership.

The LLP must be registered at Companies House and is obliged to produce and file annual financial statements.  The rules regarding accounts and audit are similar to those that apply to private limited companies.

A LLP is given separate legal personality by LLPA 2000 and must have at least two, formally appointed, designated members (partners) at all times.  The minimum capital contribution is £ 2.

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What Should a Small Business Expect from the Budget 2011?

What Should a Small Business Expect from the Budget 2011?

The aim of the coalition government is to create an environment in the UK favourable for the development of existing businesses and attraction of start-up companies. At the same time, the government aims at developing of the most mature tax system among the countries of G20. The idea is to achieve a new model of balanced and stable growth with help of a fairly competitive tax system.

Some of the provisions in the new budget affect small businesses. The most significant of them are listed below:

  • Corporation tax will amount to 26% starting from April 2011 which completes another 1% cut, by 2014 corporation tax is expected to be 23%
    rate relief holiday for small business enterprises is extended by one year which starts on October 1, 2011
  • Micro-businesses and start-up companies fall within a moratorium that exempts them from new domestic regulation from April 1, 2011, the duration of the moratorium being 3 years
  • 21 Enterprise Zones across England will enjoy simplified planning rules and tax breaks for enterprises; as of now 11 zones are determined and 10 more will be chosen based on bids of local areas

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The changes require all UK company tax returns sent in from April 2011 to be filed online, for accounting periods ending after 31 March 2010, in a specified data format - known as IXBRL

What is iXBRL

The changes require all UK company tax returns sent in from April 2011 to be filed online, for accounting periods ending after 31 March 2010, in a specified data format – known as IXBRL. Corporation tax payments must also be made electronically from April 2011. Are you ready?

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