Disadvantages of a partnership company in the UK:
- More partners involved mean more individuals to “sign-off” action points.
- Decision making can be slower – requiring multiple agreement(s).
- General partnerships are subject to unlimited liability status – meaning each parner shares responsibility and risk.
- Differences of personal aims – and firm-wide objectives.
- Potential resentment when recognition is not appropriately given.
- Under UK legislation, the partners submit their tax information by way of their personal tax return (Self Assessment). Each partner is required to register with HMRC as self-employed.