Limited Liability Partnerships (LLPs) have a range of legal statutory filing and reporting requirements for Companies House and HMRC, many of which are the same as limited company specifications.
LLP filing and reporting
- An annual confirmation statement and annual accounts are required to be filed at Companies House annually.
- Members of LLP are required to prepare and file Self Assessment tax returns for HMRC and pay their tax liabilities for their share of profits.
- When any changes occur to the registered details of an LLP or its members, it must be notified to Companies House to make sure that the public record is showing the correct details.
- Designated LLP members are liable for keeping and maintaining an LLP's statutory registers at its registered office or SAIL address, containing a PSC register, LLPs and their members should maintain accounting records for all income, expenditure, assets, and liabilities to be able to prepare annual accounts and Self Assessment tax returns.
Annual confirmation statement
Designated LLP members should prepare and submit a confirmation statement to Companies House once a year. The deadline for filing is 14 days after the anniversary of company formation or the day of the previous return.
The confirmation statement aims to provide an outline of LLP's key internal structure on a specific date, defined as the 'confirmation day'.
Below information on Form LL CS01 need to be reviewed and confirmed:
- Name of the LLP and registered number.
- SIC codes.
- Registered office address
- SAIL address (if applicable).
- Details of LLP members
- Which of those members is designated.
- The information which is held on the register of People should be controlled significantly.
Except for SIC codes and PSC details, the confirmation statement cannot be used to update LLP details. Any changes that take place during the year must be notified to Companies House on the relevant forms, either before or at the time of delivering the statement.
LLPs should prepare annual accounts for every financial year. A copy of these accounts should be provided to every member and Companies House. Small LLPs are allowed to file an abbreviated version of the accounts with Companies House, and dormant LLPs can file dormant accounts.
At least two of the following three conditions must be fulfilled to qualify as a small LLP:
- The average turnover is less than £10.2 million net.
- The average balance sheet total is less than £5.1 million net.
- The average amount of employees should not be more than 50.
Designated members are liable for filing LLPs’ first accounts with Companies House within 21 months of the date of incorporation or 9 months of the accounting reference date(ARD).
LLPs cannot file accounts online using WebFiling and software filing services. They should be delivered by post.
Notifying changes to Companies House and HMRC
Any changes to the registered information of an LLP or its members must be reported to Companies House on the relevant form, such as:
- Appointment of new members Form LLAP01 (natural member) Form LLAP02 (corporate member).
- Change in members details Form LLCH01 or LLCH02.
- Termination of a member's appointment Form LLTM01.
- Moving statutory records from the registered office to a SAIL address Form LLAD03.
- Change in registered office Form LLAD01.
- Change in SAIL address Form LLAD02.
- Change in LLP name Form LLNM01.
- Change in accounting reference date Form LLAA01.
- Self Assessment of LLP members
LLP members have taxed profits through Self Assessment. Each member is liable for registering a Self Assessment with HMRC, preparing and filing tax returns, and paying Income Tax and National Insurance on their annual income.
For Self Assessment, it is easy to register online. Class 2 National Insurance can be paid by Direct Debit every week, or larger payments can be made two times a year. Income Tax and Class 4 NI should be paid through Self Assessment either periodically throughout the year or at the end of every tax year when the corresponding tax return is filed.
Class 2 and 4 National Insurance
- Class 2 NI costs £2.95/week is payable when personal annual profits exceed £6,205.
- Class 4 NI is charged at 9% on annual profits between £8,464 £46,350.
- Profits more than £46,350 are liable for an additional 2% Class 4 NI.
If you have complex accounting records and tax returns, you must hire an accounting or tax advisor to complete and file your Self Assessment return and figure out how much tax and NI you have.
Maintaining business and accounting records
LLPs are legally required to maintain and keep their business and accounting records at a registered office or SAIL address. Information on members should be kept updated in a register of members and a register of members’ residential addresses.
A register of debentures and charges should also be kept where applicable. Except for the register of residential addresses of LLP members, these statutory records should be made available for public inspection.
LLPs also have to keep accounting records, which will be used to prepare LLP accounts and Self Assessment tax returns. Accounting records should include information of all income and expenses, assets and liabilities, stock statements, and a statement of all purchased and sold goods and services. All such records should be held for at least 3 years at a registered office or SAIL address and accessible for inspection by LLP members.