Merging two partnerships
jilt
Font Of All KnowledgeRegistered Posts: 2,903
I am taking on a new client who told me he had one partnership trading from 2 sites. It turns out he has 2 partnerships, one for each site.
One site is owned by the partnerships and the other they rent. We are considering merging the partnerships into one, each site still having it's own bank account and own set of accounts, but filing one set of accounts and return with HMRC. There is after all only one VAT registration.
Could you foresee any problems in the future if one of the sites was to close, which he says is a possibility, but not for a while yet I don't think.
One site is owned by the partnerships and the other they rent. We are considering merging the partnerships into one, each site still having it's own bank account and own set of accounts, but filing one set of accounts and return with HMRC. There is after all only one VAT registration.
Could you foresee any problems in the future if one of the sites was to close, which he says is a possibility, but not for a while yet I don't think.
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Comments
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Sounds to me like it is just one partnership anyway. If the accounts are kept separate for the benefit of the partners that is fine, but I would have thought one full set of accounts should be filed. Sounds like one business to me.0
