Accountants for Limited Liability Partnerships in London

A Limited Liability Partnership gives professional firms the flexibility of a partnership with the protection of limited liability — which is why so many London solicitors, consultants, property firms, agencies and professional practices choose it. But an LLP is also one of the most misunderstood structures in UK tax: the LLP itself does not pay Corporation Tax, each member is taxed personally on their share of the profits, and the compliance duties fall on the members.

AccoFirm provides specialist accounting for LLPs and their members across London: LLP accounts and partnership tax return, every member’s Self Assessment, profit sharing and drawings managed correctly, and designated member duties met on time.

Why London LLPs Choose AccoFirm — 2026/27
The Problem (General Accountant)	The AccoFirm Solution
LLP treated like a limited company	Specialist partnership accounting, tax-transparent handled correctly
Members taxed on profits they haven’t drawn, unprepared	Tax retention planning so the bill is always covered
SA800 and members’ returns inconsistent	Partnership + personal returns prepared together, matching figures
Designated member duties missed	Companies House deadlines managed for designated members
Profit shares not matching the LLP agreement	Allocations calculated per your agreement, reconciled
Members joining/leaving handled badly	Tax on entry/exit managed — no double tax, no gaps

What LLP Accounting Includes — AccoFirm London
Service	What It Means	Impact
LLP Accounts	Annual accounts filed at Companies House	Designated members protected
Partnership Return SA800	Profit shares reported to HMRC accurately	Drives every member’s return correctly
Members’ Self Assessment	Each member’s return prepared and filed	Personal tax right, on time
Profit Sharing & Drawings	Allocations and drawings tracked per member	No disputes, clear accounts
Tax Retentions	Part of drawings held back for tax	Members never face an uncovered bill
VAT & Payroll	Quarterly VAT, PAYE for employees	All LLP duties met
Member Changes	Joining/leaving tax managed	Clean entry and exit

Professional Accounting Services for London LLPs

Many general accountants treat an LLP like a limited company. It is not — and that mistake causes real problems.

An LLP is tax-transparent: it does not pay Corporation Tax on its profits. Instead, each member is taxed as if they were a self-employed partner, on their full share of the LLP’s profits for the year — whether or not they have actually drawn that money out. Members pay Income Tax and Class 4 National Insurance through Self Assessment, including payments on account.

At the same time, an LLP has company-style obligations: accounts and a confirmation statement filed at Companies House, a People with Significant Control (PSC) register, and designated members who carry legal responsibility for filing. Miss those deadlines and the penalties — and in serious cases, the personal consequences for designated members — are significant.

Let our experienced accountants handle the compliance and financial complexities while you focus on growing your business.

Why London LLPs Choose AccoFirm as Their Accountant

Partnership and personal tax under one roof — the LLP return and every member’s return prepared together, consistently
Designated member support — we track and manage the duties and deadlines that fall on designated members personally
Profit sharing done properly — allocations, drawings, tax retentions and members’ capital accounts reconciled correctly
Fixed fees agreed in writing — a clear fee for the LLP, plus a per-member fee for personal returns, with no surprises
Cloud accounting — Xero, QuickBooks or FreeAgent configured for partnership accounting, MTD-ready
New LLP formation advice — structure, members, and the partnership agreement reviewed before you register, not after problems appear

General Accountant vs Specialist LLP Accountant (AccoFirm)
General Accountant	Specialist LLP Accountant (AccoFirm)
Company-style thinking	Partnership expertise
Separate unconnected returns	LLP + members prepared together
No designated member support	Duties and deadlines managed
Drawings untracked	Profit share, drawings and retentions reconciled
Member changes improvised	Entry/exit tax planned

Our Accounting Services for LLPs in London

AccoFirm delivers a complete accounting service tailored to the specific needs, size, and structure of your LLP. All services are available as part of a transparent fixed-fee package.

LLP Formation and Partnership Agreement Advice

We register your LLP with Companies House, advise on designated members, and — critically — make sure you have a written LLP agreement covering profit shares, drawings, capital, new and leaving members, and what happens on retirement or dispute. Without a written agreement, the Limited Liability Partnerships Act 2000 applies default equal-sharing rules that rarely reflect what members intended.

LLP Annual Accounts and Companies House Filing

We prepare the LLP’s annual accounts and file them at Companies House within the deadline — generally nine months after the financial year-end — along with the annual confirmation statement and PSC updates. Designated members are responsible for these filings, so we manage the timetable for them and file well in advance.

Partnership Tax Return (SA800)

We prepare and file the LLP’s annual partnership tax return (SA800) with HMRC, showing total income and each member’s share of profit or loss. This statement drives every member’s personal tax return, so accuracy here is essential — an error in the SA800 flows into every member’s Self Assessment.

Members' Self Assessment Tax Returns

Each member must file a personal Self Assessment return declaring their share of LLP profits, and pay Income Tax and Class 4 National Insurance on it — including payments on account on 31 January and 31 July. We prepare every member’s return from the partnership figures, plan for their tax payments through the year, and advise on retaining enough from drawings to cover the bill.

Profit Sharing, Drawings and Tax Retentions

We calculate profit allocations in line with your LLP agreement, track each member’s drawings and current account, and operate a tax retention system where appropriate — holding back a portion of drawings so members are never faced with a tax bill on profits they have already spent.

Bookkeeping, VAT and Payroll for LLPs

Cloud bookkeeping reconciled monthly, quarterly MTD VAT returns if the LLP is VAT-registered (compulsory above £90,000 taxable turnover), and full PAYE payroll and auto-enrolment for the LLP’s employees.

Our Process for LLP Clients in London

AccoFirm follows a structured, proven onboarding process to ensure your LLP’s accounts, partnership return and members’ tax positions are correctly configured from the outset and remain accurate, current, and HMRC-compliant from month one.

Free Initial Consultation

We discuss your practice, members, profit sharing and current arrangements — by phone, video call, or in person at our London office.

Fixed-Fee Proposal

Within 24 hours, a written proposal with a clear fixed fee for the LLP’s work and a per-member fee for personal returns.

Cloud Accounting Setup

We set up or migrate your Xero, QuickBooks or FreeAgent system, structured for partnership accounting, members’ accounts and MTD compliance.

Backlog Clear (If Required)

Late accounts, an outstanding SA800 or members’ returns behind? We bring the partnership and its members fully up to date, typically within two weeks for bookkeeping backlogs.

Ongoing Monthly Bookkeeping

Records processed and reconciled monthly, with management figures for the members and advance notice of every Companies House and HMRC deadline.

Quarterly Review & Annual Integration

Quarterly reviews of profit, drawings and tax retentions, and at year-end the partnership accounts, SA800 and members’ returns prepared together as one consistent filing.

Why Specialist LLP Accounting Saves Members More Than It Costs

Members are taxed on their full share of the LLP’s profits whether or not they have drawn the money out. Without a tax retention system, members spend drawings that are really HMRC’s — and the January bill arrives with nothing set aside to pay it.

An error in the partnership return (SA800) does not stay in one place: it flows into every member’s personal return, multiplying corrections, interest and penalties. And if the LLP’s accounts are filed late at Companies House, designated members face escalating penalties personally.

Without a written LLP agreement, the law’s default equal-sharing rules apply — whatever members actually intended — and disputes over profit shares, capital and leavers follow. A mishandled member exit can trigger double taxation and overlap profit errors that take years to unwind.

Cost of Errors vs Specialist LLP Accounting — London
Risk	Cost	Solution
LLP accounts filed late	Companies House penalties, doubling on repeat	Filed early, deadlines managed
SA800 errors	Flow into every member’s return	Partnership and personal returns prepared together
Tax on undrawn profits unbudgeted	Members face bills they can’t cover	Tax retention system
No written LLP agreement	Default equal shares, disputes	Agreement reviewed at setup
Member exit mishandled	Double taxation, overlap profit errors	Entry/exit tax planned
AccoFirm LLP accounting from:	Fixed fee + per-member fee	All above risks eliminated

Let our experienced accountants handle the compliance and financial complexities while you focus on growing your business.

LLP Key Dates — AccoFirm London
LLP accounts	9 months after year-end
SA800 partnership return	31 January
Members’ Self Assessment	31 January
Payments on account	31 January + 31 July
Confirmation statement	Annually
VAT	Quarterly if registered

Integrated Partnership and Personal Tax Services in London

Circumstances change. If your profits, members or plans change, we review whether the LLP structure still serves you.

We model the limited company alternative with real figures — comparing tax on profits, profit retention and administrative burden side by side.

If a move makes sense, we manage the restructure for you; if the LLP remains right, you have documented, numbers-based advice supporting the decision.

frequently Asked Question

Does an LLP pay Corporation Tax?

No. An LLP is tax-transparent where its members are individuals: the LLP itself does not pay tax on its profits. Each member pays Income Tax and Class 4 National Insurance on their share of the profits through Self Assessment, whether or not they have drawn the money out. Different rules can apply where a member is a company, and we will advise if that affects your LLP.

What does an LLP have to file each year?

Annual accounts and a confirmation statement at Companies House; a partnership tax return (SA800) to HMRC; and a personal Self Assessment tax return for every member. If the LLP is VAT-registered or employs staff, quarterly VAT returns and monthly payroll filings also apply.

What is a designated member and what are they responsible for?

Every LLP must have at least two designated members. They carry extra legal duties, including signing and filing the accounts, filing the confirmation statement, and dealing with Companies House correspondence. If filings are missed, designated members can face penalties personally — which is why we manage these deadlines for them.

Do LLP members pay tax on drawings or on profits?

On profits. Your taxable amount is your share of the LLP’s profits for the accounting period, regardless of how much you actually drew. If you draw all your profit share during the year, you must still set money aside for the tax. We operate tax retention planning for members to prevent this problem.

Can an LLP member also be an employee of the LLP?

In most cases, members are taxed as self-employed partners, not as employees, and are not paid through PAYE for their member income. Salaried member rules can treat certain fixed-share members as employees for tax purposes where their pay is not genuinely linked to the LLP’s profits — this is a complex area and we review the position for every member when we take on an LLP.

LLP or limited company — which is better for a professional firm?

It depends on your profits, how much you want to retain in the business, and how flexible your profit sharing needs to be. An LLP offers flexible sharing and partnership status; a limited company offers Corporation Tax on retained profits and dividend planning. We model both with your figures so the decision is based on numbers, not habit.

We are setting up a new LLP — when should we involve an accountant?

Before you register. The LLP agreement, profit shares, designated members and tax registrations set at the start decide your tax for years. We review the structure before formation so nothing needs unpicking later.

One of our members is a limited company — does that change the tax?

Yes. Corporate members are taxed under Corporation Tax rules on their share rather than Income Tax, which changes the LLP’s reporting. We handle mixed-membership LLPs and advise on the mixed membership rules.