As a partnership there are at least three tax returns required:
1. SA800 Partnership tax return. On here you show details of the partnerships income and expenses, the names of the partners (including address, national insurance number & UTR) and their share of the profits or loss.
The partnership does not pay any tax. The partners pay any taxes due based on their share of any profits/loss along with other income they may have. If this tax return is submitted late to HMRC then ALL partners are fined a minimum £100 each.
2. 2 x SA100 Personal tax returns. These are for the partners to declare their share of any partnership profits or losses on the Partnership page (SA104) plus any other income they may have in the tax year, even if tax has already been paid on this income for example from an employment. If this tax return is filed late to HMRC a £100 late filing penalty will be charged by HMRC.
All three tax returns need to be filed with HMRC on or before the 31 January, any taxes owed must also be paid on or before 31 January.
The following things are worth mentioning for further clarification:
- The tax returns will have to be done on separate accounts under different email addresses. The Partnership tax return will need to be under 1 email address and the personal tax returns will have to be done under another account with a different email address.
An example of this is as follows:
Account 1 - '
Johnappleseed@gmail.com' - This will be the login address for your Partnership tax return account. You'll be able to file your SA800 Partnership tax return on this account.
Account 2 - 'J
ohnAppleseed2@gmail.com' - This will be the login address for your Personal tax return account. If you choose the 'Friends & Family' plan, you can file multiple SA100 Personal tax returns under this single account. If you instead choose an 'Individual' plan, you'll only be able to file a single Personal tax return. Your partner(s) will have to create their own account and file their own return.