New Partner/Member – Introductory Guide

There are a number of practical issues to consider when joining a partnership, some of which are detailed below.

This guide sets out the main issues that arise when becoming a partner or member. Admission into a partnership means that you become self-employed and are therefore no longer an employee of the business.

Capital

You may be required to introduce capital into the partnership. This is commonly funded by a business loan from a bank. Often firms will have existing arrangements with a bank offering these facilities. Care should be taken to ensure that the loan is correctly structured in order to qualify for tax relief. Providing it is correctly structured tax relief on the loan interest paid may be claimed at your marginal rate of taxation.