Setting up a Business Partnership in the UK Reading Answers
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Setting up a Business Partnership in the UK Reading Answers is a general reading topic. This topic talks about how to set up a business partnership in the UK. The given IELTS topic has originated from the book named “Cambridge IELTS 12 General Training with Answers”. The topic named Setting up a Business Partnership in the UK Reading Answers has 7 questions in total. The topic comes with a single type of question, which is, choose one word only. The candidates should thoroughly read the IELTS reading passage to recognize the synonyms and identify the keywords and answer the questions below. IELTS reading practice papers can be taken into consideration by the candidates in order to score a good score in the reading section. These practice papers contain similar topics like Setting up a Business Partnership in the UK Reading Answers.
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Section 1
Read the passage to answer the following questions
Setting up a Business Partnership in the UK Reading Answers
Two or more people can go into business together by setting up either a limited company or a partnership. A partnership is the easier way to get started, and simply links two or more people together in a simple business structure. Unlike a limited company, a partnership doesn’t have a separate legal status. The partners are usually self-employed individuals, although a limited company counts as a ‘legal person’ and can also be a partner.
In a partnership, you and your partner or partners personally share responsibility for your business. This means, among other things, that if your business cannot afford to pay its debts, you must pay them yourselves. Again, this is not the case with a limited company. Partners share the business’s profits, and each partner pays tax on their share.
When you set up a business partnership you need to choose a name. You can trade under your own names, for example, ‘Scotts Tyres’, or you can choose another name for your business. You don’t need to register your name. However, you should register your name as a trademark if you want to stop people from trading under your business name.
Business partnership names must not include ‘limited’, ‘Ltd’, ‘limited liability partnership’, LLP’, ‘public limited company’ or ‘pic’, be offensive, or be the same as an existing trademark. Your name also can’t suggest a connection with government or local authorities, unless you get permission. There is no central database of partnership names in the UK, so to avoid using the same name as another business, it is advisable to search on the internet for the name you are considering.
You must include all the partners’ names and the business name (if you have one) on official paperwork, for example invoices.
You must choose a ‘nominated partner’ who is responsible for registering your partnership with HM Revenue and Customs (HMRC), the government department responsible for the collection of taxes. This person is responsible for managing the partnership’s tax returns and keeping business records. Alternatively, you can appoint an agent to deal with HMRC on your behalf.
All partners need to register with HMRC separately and send their own tax returns as individuals.
You must register by 5 October in your business’s second tax year, or you could be charged a penalty.
You must also register for VAT if your VAT taxable turnover is more than £85,000. You can choose to register if it’s below this, for example to reclaim VAT on business supplies.
Section 2
Solution and Explanation
Complete the sentences below.
Choose ONE WORD ONLY from the text for each answer.
Write your answers in boxes 20–27 on your answer sheet.
- A partnership is different from a limited company in not having its own ……………………. as a legal body.
Answer: status
Supporting Sentence: Unlike a limited company, a partnership doesn’t have a separate legal status.
Keyword: limited company
Keyword Location: 1st paragraph, 3rd sentence
Explanation: The author directly states that unlike limited companies, partnership does not have a legal status. Hence, it is different because it does not have its own legal status.
- The partners are personally responsible for paying all the partnership’s ……………………. .
Answer: debts
Supporting Sentence: This means, among other things, that if your business cannot afford to pay its debts, you must pay them yourselves.
Keyword: must pay, themselves
Keyword Location: Paragraph 2, second sentence
Explanation: The passage states that if there are debts, the partners should personally pay them. Hence, debt is the correct answer.
- The partnership’s ……………………. are divided between the partners.
Answer: profits
Supporting Sentence: Partners share the business’s profits, and each partner pays tax on their share.
Keyword: partner, share
Keyword Location: 2nd paragraph, last sentence
Explanation: As per the author, if there are debts, the partners should personally pay them. Similarly, if there are profits, it is also divided between the partners. Hence, profits is the correct answer.
- Registering the partnership’s name prevents others from using that name when ……………………. .
Answer: trading
Supporting Sentence: However, you should register your name as a trademark if you want to stop people from trading under your business name.
Keyword: register, trademark, trading
Keyword Location: 3rd paragraph, last sentence
Explanation: As per the passage, one can stop others from using the name by trademarking it. So the author suggests to trademark the name used for trading. This makes trading the correct answer.
- The best way to find out if a name is already in use is to use the ……………………. .
Answer: internet
Supporting Sentence: it is advisable to search on the internet for the name you are considering.
Keyword: internet, name, search
Keyword Location: Paragraph 4, second last sentence
Explanation: The author states that there is no database to search for names. So the author advises to find out if the names are in use via the internet. This makes the internet the correct answer.
- The names of the partners and the partnership must appear on ……………………. and other documents.
Answer: invoices
Supporting Sentence: You must include all the partners’ names and the business name (if you have one) on official paperwork, for example invoices.
Keyword: partner, paperworks
Keyword Location: Paragraph 4, last sentence
Explanation: The author says that one must include a partner's name on official paperwork. As an example, he talks about invoices. Hence, the partnership must appear on invoice.
- You must have a nominated partner, or someone to act as your ……………………., for all contact with HMRC.
Answer: agent
Supporting Sentence: Alternatively, you can appoint an agent to deal with HMRC on your behalf.
Keyword: Alternatively, agent, HMRC
Keyword Location: 5th paragraph, 3rd sentence
Explanation: The author first talks about the partner that one can select. Next, the author says that as an alternative, an agent can also be selected. Hence, agent is the correct answer.
- You will have to pay a ……………………. if you miss the deadline for registering the partnership.
Answer: penalty
Supporting Sentence: You must register by 5 October in your business’s second tax year, or you could be charged a penalty.
Keyword: charged, must register, penalty
Keyword Location: 5th paragraph, last line
Explanation: The author in the passage states that one must register by 5th october. This date is the deadline. So if they are not registered by the deadline, they might have to pay a tax penalty.
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