Closing a LLP in first year, Do I still need to complete end of year accounts?

bails1000 · #1 5th May 2012, 16:26

In need of a bit of advice here!

My sister and I set up a LLP last year and to cut a long story short its not gone to plan. She wants out and I have to say I am somewhat relieved as I knew that having an LLP would be a pain in the backside, as opposed to being a basic partnership. I am going to start again as a sole trader so we need to get the bank accounts closed, parnership dissolved ect. I've been informed that for an LLP to be dissolved, It needs not to have traded within 3 months, thats not a problem as we have done nothing since february. We have no debtors or creditors. So we will effectively be no more after may, and Im wondering now if we will still need to file our accounts with companies house being as we have not lasted a year? I suspect yes, but Im hoping no, as the accountant is extremely expensive. Downsides of having a LLP and of working with family!

David Griffiths · #2 5th May 2012, 18:15

Good news and bad news.

You won't have to file accounts with Companies House as they will not do anything after you file the dissolution form. However, you will have to complete the partnership tax return for HMRC and will need the accounts to do that.

bails1000 · #3 5th May 2012, 18:56

Thanks for that, good news at least partially. Do the accountant have to do the forms for HMRC or can we do that ourselves? My sister was also self employed at the begining of the partnership, and when she went do do her self assessment, it said they needed a partnership statement or something, which is what we wouldve got had the accountant done our end of year accounts? the whole thing confuses me to be honest, and im just worried about getting fines ect. Although i guess neither of us made enough money to pay any tax ect.

David Griffiths · #4 5th May 2012, 19:14

You can try to do anything yourselves, and there is no need to involve an accountant. HMRC don't actually get a copy of the accounts, but the figures are transferred to the partnership return. Plenty of people do it themselves - it's a question of how much effort you are prepared to put in reading the notes and trying to work out what's what. Be aware that you would be advised to file the partnership return by 31 October because that means you can file a paper return. If you do it later you will have to pay for software to do it as HMRC don't provide a facility to file partnership returns online.