Tax returns for partners and partnerships
If your business is run as a
partnership you'll have to complete an individual Self Assessment tax return
(SA100). You'll also have to fill in the partnership supplementary pages
(SA104). The nominated partner must also complete a Partnership Return (SA800)
- showing each partner's share of the profits or losses. This might include
supplementary pages too, depending on what types of income the partnership has.
The nominated partner is responsible for sending in the partnership return but you'll be jointly liable with your other partners for any penalties and interest if the return is late or inaccurate. Each partner is personally responsible for paying the tax and Class 4 National Insurance contributions due on their share of the partnership profits
Registering a new partnership
The nominated partner must register the partnership for business taxes with HM Revenue & Customs (HMRC). They can do this online. Each business partner must also register themselves for Self Assessment and National Insurance. The partnership and each partner will each then receive their own Unique Taxpayer Reference for Self Assessment.
Record keeping
You should keep your business
records for five more years after the normal tax return deadline of 31 January.
This date applies even if you've sent in a paper tax return.
The records that you'll need to keep will depend on the types of income and
gains that the partnership has. Your accountant - if you have one - will be able
to advise you on the records you'll need to keep for tax and accounting
purposes.
You may have to pay a penalty if you don't maintain and keep proper records for the required amount of time.
Deadlines for Self Assessment returns
The tax year runs from 6 April to the following 5 April. You can send partnership and partners' returns on paper or online. The deadlines are:
· 31 January after the end of the tax year for online tax returns
· 31 October after the end of the tax year for paper returns
If at least one of the partners is a company the nominated partner must submit the completed partnership return by:
· the later of 31 October following the end of the tax year or 9 months from the end of the relevant period, for paper based returns
· the later of 31 January following the end of the tax year or 12 months from the end of the relevant period, for online returns
The relevant period will generally be the period or periods to which the partnership makes up accounts and will end on the accounting date(s) of the partnership ending in the tax year.
In : Partnerships
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