Closing partnership and starting PAYE work

paulhuthart

Hi,

I've been working in a partnership for a couple of years, but as the money has been going down I will be starting to work for a company soon, usual PAYE style.

Looking at the HMRC website, it's unclear just what steps are involved in doing this. In particular:

Is there any advantage in closing down the partnership immediately, or should I wait until the end of the tax year for simplicity?

Many thanks

antonic

First of all can you tell are you going to be replaced as a partner OR is the partnership going to cease completely ?.

If its 1), then you need an acknowledgment from the continuing partners that you will have no responsibility for any FUTURE debts (You are still joint & severally liable for any debts accrued BEFORE you leave).

If its 2) you need to tell HMRC that the partnership has ceased, because of you dont they will pursue for any debts (joint & severally liable etc).

If you are VAT registered you will need to inform HMRC that you have left the partnership (by post) and give them the name of the new partner.

Hope this helps