Partnership Tax Returns

SmartAWARE help filing general partnership and LLP partnership returns for you to HMRC.The Partnership Act 1890 defines this arrangement as two or more people ‘trading in common with a view to profit’. A partnership tax return, then, is the legal responsibility of declaring the income, or losses, of the partnership. It accounts for the income of the partnership and how this is distributed to the partners.

The partnership itself isn’t taxed. Money passes straight to each of you, and you have to submit a Self Assessment tax return on time, just as if you were self-employed. Your partnership Income Tax return uses an SA800 form to declare these finances and tell HMRC how profit has been split.

Essentially, there are two documents to bear in mind. One partner is nominated to handle the partnership’s tax returns known as SA800 Partnership Tax Return. Then you each complete a Self Assessment tax return (SA100 form) with an additional page SA104 on which the individual’s share of the partnership income is declared. This then determines how much tax each partner is liable to.