You may be aware of the ongoing statutory requirements of limited liability companies (LLCs) and fortunately those of an LLP are not dissimilar. Below are a list of these obligations:
- First members meeting. This meeting, held shortly after incorporation, establishes the basic structure of your LLP.
- Maintaining statutory and non-statutory registers. This comprises of a number of registers, including: a) a statutory register of charges and debentures, b) a register of members which is divided into designated and other members, c) a non-statutory register of sealings.
- Annual return. LLPs are required to file an annual return.
- Annual statutory accounts. LLPs are required to file annual statutory accounts. Small company exemptions may apply and audit exemption rules are also applicable. Companies House compliance requirements are, however, generally minimal.
Obligations of members to HMRC
Once the incorporation of your LLP has taken place Companies House will provide conformation to HMRC of the incorporation details (such as name, number, etc) and, once received, HMRC will duly issue a UTR (Unique Tax Reference) to the LLP. Along with this, HMRC will issue a letter to the entity containing further instructions. This letter is sent to the registered office.
This letter instructs members of the LLP to register themselves with HMRC and obtain a UTR in their own right. This is required in order for the entity to submit its required annual tax returns online. Online submission is wholly preferable as it provides the entity with more time to complete the returns in comparison to submitting them via paper. If the LLP has a UTR but the members do not, then these returns must be submitted by paper instead.
Paper returns must be submitted before 31st October. (For 5th April 2015 tax year 31st October 2015) Online returns must be submitted before 31st January. (For 5th April 2015 tax year 31st of January 2016)
As such, it is essential for members to register themselves with HMRC, as instructed in the letter, so that more time is available to submit the returns.
Form SA1 should be completed by each individual member and sent to HMRC. Once processed, the member will receive confirmation of their UTR.
Form SA402 should be completed by each corporate member and sent to HMRC. Once processed, the member will receive confirmation of their UTR.
How Jordans can assist you further
Jordans Accounting Services can assist with these processes and also the completion and submission of the tax returns. Similarly, if you need help with your ongoing statutory obligations, our Governance and Compliance team would be happy to help. Call or email us for further information.