Bookkeeping for Partnerships and LLPs

Running a partnership or Limited Liability Partnership (LLP) means dealing with bookkeeping that's more complicated than a sole trader but different from a limited company. Partnerships need to file Partnership Tax Returns showing how profit is split between partners, plus each partner files their own Self Assessment. LLPs need Companies House filing like limited companies, plus partnership tax treatment. Get the profit allocation wrong and partners are paying the wrong amount of tax, or you're filing incorrect returns.

The problem is most partnerships and LLPs try to handle bookkeeping like sole traders or like limited companies, but partnerships have their own rules. You need to track profit allocation between partners, prepare Partnership Tax Returns, handle individual partner Self Assessment support, and (for LLPs) file with Companies House. Get it wrong and partners are overpaying or underpaying tax, or you're filing incorrect returns with HMRC or Companies House.

We handle bookkeeping specifically for partnerships and LLPs: partnership profit allocation tracking, Partnership Tax Return preparation, LLP Companies House filing support, and individual partner Self Assessment assistance. Whether you're a traditional partnership in Medway, an LLP in Maidstone, or a professional services partnership in Canterbury, we'll track your profit allocation properly and make sure all your returns are filed correctly. No tax errors, no compliance issues—just proper partnership bookkeeping that keeps everyone compliant.

What this helps you do (fast)

• Track profit allocation accurately — See exactly how partnership profit is split between partners according to your partnership agreement. Know what each partner's share is for tax purposes.
• File Partnership Tax Returns correctly — Partnership Tax Return shows total partnership profit and how it's allocated between partners. HMRC needs this before individual partners can file their Self Assessments.
• Handle LLP Companies House filing — LLPs must file annual accounts with Companies House (like limited companies). We'll prepare accounts that meet Companies House requirements.
• Support individual partner returns — Each partner needs their share of profit for their Self Assessment. We'll provide partners with their profit share details ready for their individual returns.
• Stay compliant with dual obligations — Partnerships: Partnership Tax Return plus individual Self Assessments. LLPs: Companies House filing plus Partnership Tax Return plus individual Self Assessments. We'll handle all of it.
• Get accurate financial reports — See partnership-wide profit and loss, partner-by-partner allocation, cash flow, and balance sheet. Understand how the partnership is performing and how profit is distributed.

How it works

Step-by-step process for partnership/LLP bookkeeping:

1. Discovery call — We chat about your partnership or LLP: how many partners there are, what your partnership agreement says about profit sharing (equal shares, percentage shares, salary + profit share, etc.), whether you're a traditional partnership or LLP, what type of business you run, and what your current bookkeeping setup looks like.
2. Partnership agreement review — We review your partnership agreement (if you have one) to understand:
   • Profit sharing arrangement — How profit is allocated (equal shares, percentage-based, salary + profit share, capital accounts, etc.)
   • Partnership structure — Traditional partnership vs LLP, how decisions are made, what happens when partners join or leave
   • Capital contributions — If partners have different capital contributions, how that affects profit allocation
   This matters because profit allocation determines each partner's tax liability.
3. Bookkeeping system setup — We set up a bookkeeping system that tracks:
   • Partnership income — All income received by the partnership
   • Partnership expenses — All expenses paid by the partnership
   • Partner accounts — Each partner's capital account, drawings, and profit share
   • Profit allocation — How profit is divided between partners according to partnership agreement
4. Monthly bookkeeping — We track:
   • Partnership income — All income received (sales, fees, services, etc.)
   • Partnership expenses — All expenses paid (rent, utilities, wages, supplies, etc.)
   • Partner drawings — Money partners take from the partnership (not salary, just withdrawals)
   • Partner capital accounts — Track each partner's capital contribution and current account balance
   • Bank reconciliation — Match all transactions with bank statements
5. Profit allocation calculation — Throughout the year, we track how profit should be allocated. At year-end, we calculate:
   • Total partnership profit — Income minus expenses
   • Profit allocation — How profit is split between partners (according to partnership agreement)
   • Each partner's share — Individual profit share for each partner's Self Assessment
6. Partnership Tax Return preparation — We prepare the Partnership Tax Return (SA800) showing:
   • Total partnership income
   • Total partnership expenses
   • Net partnership profit
   • Profit allocation between partners (each partner's share)
   • Any adjustments or special items
7. Individual partner support — We provide each partner with:
   • Their share of partnership profit (for their Self Assessment)
   • Any partnership-related expenses they can claim individually (if applicable)
   • Support completing their individual Self Assessment return (if they want help)
8. LLP Companies House filing (if applicable) — If you're an LLP, we prepare:
   • Annual accounts for Companies House (balance sheet, profit and loss, notes)
   • Companies House filing within 9 months of year-end
   • Confirmation Statement (annual update of LLP details)

We work with whatever system suits you: cloud accounting (Xero, QuickBooks) for automation, simple spreadsheets if you prefer, or even starting from scratch if you've been winging it. The key is tracking profit allocation properly—that's what makes partnership bookkeeping different from other business structures.

Costs & timelines

Pricing factors:

• Traditional partnership vs LLP — LLPs typically cost more because they have Companies House filing requirements (like limited companies)
• Number of partners — More partners means more profit allocation tracking and individual partner support work
• Profit sharing complexity — Simple equal shares costs less than complex arrangements (salary + profit share, different percentages, capital account adjustments)
• Transaction volume — More transactions mean more bookkeeping work

Commonly reported ranges by local providers:

• Monthly bookkeeping for partnerships: £150–£350/month depending on number of partners, transaction volume, and profit sharing complexity
• Monthly bookkeeping for LLPs: £200–£400/month depending on same factors plus Companies House filing work
• Partnership Tax Return preparation: £300–£600 (separate service, or included if you're on monthly bookkeeping)
• LLP Companies House filing: £200–£400 per year (separate service, or included if you're on monthly bookkeeping)

Why partnership/LLP bookkeeping costs more than sole trader:

• Profit allocation tracking adds complexity
• Partnership Tax Return preparation adds work
• Multiple partners mean multiple individual returns to support
• LLPs have Companies House filing (dual obligations)

Timeline: Setup usually takes about 1–2 weeks. Once we're set up, monthly bookkeeping typically takes 2–3 days from when we receive your records. Partnership Tax Returns are prepared after year-end (usually within 1–2 months). LLP Companies House filing is due within 9 months of year-end.

No hidden fees. All prices exclude VAT. We offer monthly payment plans and can adjust if your partnership structure or transaction volume changes significantly.

Kent (UK) focus

We work with partnerships and LLPs across Kent: traditional partnerships in Medway, LLPs in Maidstone, professional services partnerships in Canterbury, and business partnerships throughout the region.

Kent partnerships and LLPs face the same HMRC and Companies House deadlines as everyone else—Partnership Tax Returns by 31 January (for paper) or 31 January (for online), individual Self Assessments by 31 January, LLP Companies House filing within 9 months of year-end. The difference is when your partnership bookkeeping is organized and current, these deadlines aren't stressful. You know exactly how profit is allocated, what each partner's share is, and what returns need filing.

Common Kent partnership/LLP scenarios:

• Professional services partnerships — Accountants, solicitors, consultants operating as partnerships or LLPs, needing profit allocation tracking
• Business partnerships — Traditional partnerships running businesses together, needing partnership return filing
• LLPs — Limited Liability Partnerships wanting limited liability protection with partnership tax treatment, needing dual compliance (Companies House + partnership returns)
• New partnerships — Partnerships just starting, needing proper bookkeeping setup from day one

Kent partnership market context:

• Kent has active partnership and LLP formations (professional services, business partnerships)
• Partnerships are common in professional services (accountants, solicitors, consultants)
• LLPs offer limited liability with partnership tax treatment (popular for professional services)

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent partnerships and LLPs are dealing with. Profit allocation, Partnership Tax Returns, LLP Companies House filing, individual partner returns—we've helped loads of Kent partnerships and LLPs get sorted, and we know how to make partnership bookkeeping simple.

FAQs