We are able to consider customers that are Equity Partners in an LLP where they receive a share of the firms’ net profits. This will usually consist of a fixed level of monthly drawings, plus an additional top-up payment (or deduction if the company has made a loss) at the end of the year related to the performance of the firm.
We have different requirements depending on length of time employed as a partner in a limited liability partnership
All customer that are partners in limited liability partnerships should be inputted as Sole Trader / Partnership
Equity Partner for less than 1 year (no completed tax returns as an equity partner)
Minimum document requirements:
- The latest contract and letter from finance/senior partner confirming level of income
- The most recent bank statement – to evidence income received is in line with the contract
- If customer was previously employed:
- Last P60
- If customer was previously self-employed equity partner:
- Latest 2 years’ SA302 Tax Calculation (TC)
- Latest 2 years’ SA302 Tax Year Overview (TYO)
Additional requirements
- Where the latest two years’ SA302, reflecting two full years as an equity partner, aren’t available (i.e. customers have been an equity partner for less than 2 years), the LLP must:
- Have been incorporated for a minimum of 2 years
- Have at least 4 partners
- Operate in the accountancy or legal sectors
- Income used is the value of the guaranteed income detailed on the current contract (no discretionary/performance linked payments can be included)
- Value of the guaranteed income to be keyed as share of net profits income for the last 2 years on the application
Equity Partner for a year (completed first tax return reflecting one full year as a partner)
Minimum document requirements:
- The latest contract and letter from finance/senior partner confirming level of income
- Latest SA302 Tax Calculation (TC)
- Latest SA302 Tax Year Overview (TYO)
Additional requirements
- Where the latest two years’ SA302, reflecting two full years as an equity partner, aren’t available (i.e. customers have been an equity partner for less than 2 years), the LLP must:
- Have been incorporated for a minimum of 2 years
- Have at least 4 partners
- Operate in the accountancy or legal sectors
- Income used is the average of the latest SA302 (showing 1 full years LLP earnings), which is to be entered in the latest years’ share of net profits, and the guaranteed income detailed within the contract which is entered as the previous year’s share of net profits
- EXAMPLE: If full year’s earnings for partner are showing as £100,000 on the Tax Calculation, and the contractual guaranteed income is £60,0000, £100,000 should be entered as latest years’ share of net profits, and £60,000 should be entered as previous years’ share of net profits, system will automatically use an average of the two (£80,000)
Equity Partner for 2 years (completed two tax returns reflecting two full years as a partner)
Minimum document requirements:
- The latest contract and letter from finance/senior partner confirming level of income
- Latest 2 years’ SA302 Tax Calculation (TC)
- Latest 2 years’ SA302 Tax Year Overview (TYO)
Additional Requirements
- Input latest and previous years’ share of net profits as per SA302