Answered by Phil Verity, Mazars
An LLP is a corporate entity and the liability of the partners is limited to the amount of their subscribed capital. LLPs have to file accounts and returns at the Registrar of Companies. Partners in an LLP are generally treated for tax purposes in the same way as partners in any other partnership. Partners in LLPs are broadly subject to the same restrictions on reliefs for losses, interest, etc as limited partners under the Limited Partnership Act 1907 and there may be restrictions on the amount of loss set off against other income.
Regarding the partners cars capital allowances and the computation of expenses allowable against income for tax purposes will follow those of partnerships. So there might be restrictions in the tax computations on the car expenses dependent upon the proportion of business mileage, but there will not be an individual company car benefit for the partners. However there may be a company car benefit for your employees if you employ staff with company cars.
I’m not sure what you mean by credit charges on invoices work. If you mean adding interest on sales invoices for late payment of sales invoices the Better Payment Practice Group provides extremely helpful guidance on its website at www.payontime.co.uk.
Phil Verity is a partner at Mazars, the international accounting and business advisory firm, and Head of the Mid Corporate Market business line. Phil works with a wide variety of entrepreneurial and owner-managed businesses, helping them tackle the challenges of growth and development. He frequently advises companies on issues such as business strategy, financial management and control, mergers and acquisitions, succession and overseas expansion.