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2015.10.14 - United Kingdom: Filing of tax returns for the members of LLP, L.P. and other types of UK partnerships.


In accordance with UK legal regulations, any partnerships registered in this jurisdiction (i.e. - English LLPs, Scottish Limited Partnerships, as well as other kinds of partnerships) are obligated to file their annual tax returns with the HMRC (Her Majesty Revenue and Customs).

See more details on these regulations here:

Another important requirement is that under the UK law (in particular - the Tax Management Act 1970, as amended), in the case of partnerships (LLP, L.P.) not only the tax return of the partnership itself has to be filed with HMRC on an annual basis, but also each of the members of the partnership must file his/her/its individual tax return with the HMRC.

Unless the tax returns are filed in time, the HMRC are entitled to apply the fines to the members –and they may reach the same amount as for the partnership itself, i.e. - GBP 1,600.

Or, due to the absence of another information, the HMRC may even apply tax charges on the basis of the own calculation methods.

The matter of tax returns of members is actual to the owners of partnerships that were founded by individuals or legal entities provided by the client.

For the registration of a partnership member with the HMRC, a separate account is set up for this member - and after a year, depending on the member’s status (i.e. - an individual or a legal entity) an appropriate type of tax return is prepared, then forwarded to the member for accept, and thereafter filed with the HMRC.

Technically, in order to register a member of a partnership with the HMRC, the following documents are required:

  1. If the member is a legal entity:
    1. A copy of the certificate of incorporation containing the date and the registration number.
    2. Any legal entity is assumed to be represented by a particular individual – normally a director, or in some cases - a representative. A document that certifies the powers of this individual (i.e. - the register of directors or, where there is a representative, a power of attorney or another document of authority) is required.
    3. A copy of the passport of the individual stated above in paragraph b).
    4. A document stating the address (utility bill, address confirmation from municipality, etc.) of the individual stated above in paragraph b).
  2. If the member is an individual:
    Documents stated in paragraphs c) and d) above.

On the basis of such documents, a standard statutory form will be filled, for registration of the member with the HMRC. After the form is signed by the member, it will be sent to the HMRC.

Subsequently, a relevant tax return of the member will be filed with HMRC on an annual basis.

INTERNATIONAL OVERSEAS SERVICES comments: Provided the partnership has conducted no business in the United Kingdom, and the tax returns of the members are filed with the HMRC in timely manner, no taxes will be charged.

However, it is important to note that on the whole the HMRC treats the filing obligations of the member of any LLP, L.P. similar to obligations of any other taxpayer.

This means that a member being a legal entity must file a standard tax return for corporations (i.e. - form CT600); whereas a member being an individual must file a standard tax return for individuals (i.e. - form SA100).

If those returns are not filed in timely manner, provisions applied by the HMRC to the members of the L.P., LLP are absolutely the same as those would be applied to any other taxpayer of the United Kingdom.

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