PARTNERSHIP TAX

COMPLIANCE PARTNERSHIP TAX

This is a tax return which is made by the partnership on their profits, losses and capital gains which must be submitted annually to H M Revenue and Customs (HMRC).

If you are running a business with another person as a business partnership, then you are required by HMRC to file a partnership tax return because you are still a self-employed individual. The difference being that all business partners share the responsibility and profits.

The Partnership tax return (Form SA800) must include the income, profit and losses of the partnership and how this is allocated to the partners.

However, because the partnership itself isn’t taxed, each partner (of which there must be two but no more than twenty) needs to also submit a Self-Assessment tax return to HMRC, pay National Insurance and income tax and the nominated partner must also submit a tax return for the partnership as a whole.

The Self-Assessment tax return must detail how much income you received so that HMRC can determine how much tax each partner is liable for.

The deadline for filing your Partnership tax return online is by midnight on 31^st January or 31^st October if by post. Late filing will incur a penalty of £100 per member of the partnership.

This is just a very brief outline of what is required and involved. To find out more, why not Contact One Of Our Accountancy Tax Experts who will be happy to advise you and may also save you some money!

Our Compliance Services

Our other compliance services include Corporation Tax, Annual Accounts, Audits, P11ds, Employment Tax, Self-Employment Tax, Capital Gains Tax, Inheritance Tax and Tax Investigation Protection.

When approached by McKenzies, we were very reluctant to change accountants, especially as our accountants had done nothing wrong. But, on reflection, they should have done more. We now use McKenzies as our first port of call for all types of business advice.