A new partner may bring extra money for investment into the business, but bear in mind that the profits may be split among all the partners, including the new partner, in accordance with any partnership agreement.
The partners in the old partnership remain liable for its debts, but the new partner is not liable for old debts. The partners in the old partnership have the right to use partnership property to pay outstanding debts, and to split what remains between themselves in accordance with the partnership agreement.
Do you need to inform HMRC a partner has joined?
Partners are responsible for paying their own income tax and National Insurance contributions. New partners must register for Self Assessment. You don't need to tell HM Revenue & Customs (HMRC) a partner is joining unless the partnership is VAT-registered. If you partnership is VAT-registered you must tell HMRC when a partner joins within 30 days. You may face financial penalties if you don't.
It is advisable to tell your solicitor and your accountant of any changes to a partnership, and the partnership's bank should be informed if there are any guarantees provided by the partners.
Reporting changes to limited partnerships
For limited partnerships and limited liability partnerships (LLPs), you need to inform Companies House when a member joins or leaves. For more information, see running a company or partnership and reporting changes to Companies House.