04: Value added tax
A partnership is liable to VAT in its own right and must make VAT returns in the partnership name. It is sometimes possible to keep below the VAT registration threshold by planning the structure carefully.
- A partnership has a single VAT registration, regardless of the number of business ventures it carries on.
- It is essential to inform HM Revenue and Customs of all changes in members of a partnership.
- A partnership’s VAT registration normally continues after changes in partners.
- Individual partners can run separate businesses and each would be viewed as a separate person for VAT purposes.
