When you buy your home with Wayhome, you do so in partnership with our funding partners. Together you’ll purchase the home through a Limited Liability Partnership.
In becoming a member of the LLP, you enter into a business agreement with Wayhome and the Funding Partner, and that comes with a little bit of extra administration compared with owning a property directly.
Both the LLP and the members of the LLP each have tax obligations with HMRC.
Who Are the “Members” of the LLP?
Each LLP will have 3 members
Our funding partner is the "Funding Member".
Wayhome is the "Nominated Member". This is for tax, legal and administrative reasons only.
You the customer/s, are known as the Residential Member/s".
What are the Tax Implications?
Like any business the LLP that owns your property is required to file annual accounts at Companies House and a tax return to HMRC. Wayhome, as the Nominated Member, will take care these filings on behalf of the LLP
As a residential member of the LLP, you’ll be required to file an annual Self Assessment Tax Return with HMRC. Wayhome will provide you with the relevant LLP information you’ll need to complete your Self Assessment, and there shouldn’t be any additional tax payable as a result of you being a member of the LLP.
Why will I need to file a Self-Assessment Tax Return?
Confirmation of Partnership: Every LLP member, even if not earning, must confirm their partner status.
LLP Taxation: The LLP, as a legal entity, reports finances to Companies House and HMRC. Individual partners, not the LLP, pay taxes.
Self-Assessment Tax Returns: Each member of the LLP is responsible for registering with HMRC and submitting their own Self-Assessment tax return to report their income from the LLP.
No Additional Tax: In your case, as a residential member of the LLP, you don’t receive any income directly from the partnership; instead, it is distributed to other partners. As a result, there’s unlikely to be any additional tax liability for you personally.
What happens next?
Step 1 - UTR Number
Any residential member of the LLP needs to obtain a Unique Tax Reference (UTR) Number by registering for Self Assessment. If you already have a personal UTR, you won’t need to reapply
Share your UTR with Wayhome for tax return purposes.
Keep your UTR safe as it's used for Self Assessment.
Guidance on how to register for Self Assessment will be provided on completion day. Do make sure you register promptly as HMRC processing can be slow.
Step 2 - LLP Annual Accounts
Once a year Wayhome, as the nominated member, will file an LLP tax return with HMRC and submit company account with Companies House .
As long as we have your NI number and your UTR number, there’s nothing you’ll need to do on this step.
Step 3 - Filing your Self Assessment
Once the LLP tax return has have been filed, it’ll be over to you to prepare and file (submit), your Self Assessment Tax return with HMRC.
We’ll provide you with the information you’ll require on behalf of the LLP to complete your Self Assessment, along with guidance of how and when you’ll need to submit.
Important dates
Registering for Self Assessment
Deadline to register with HMRC for Self Assessment - 5 October 2024*
Deadline for Submitting a paper return - midnight 31 October 2024.*
Deadline for Submitting a online return - midnight 31 January 2025.*
*All dates above pertain to tax year 2023/24
**It's always advisable to seek advice from a tax professional or accountant to ensure you are fulfilling your tax obligations correctly.