Self Assessment tax returns for partnerships

A partnership is a business which is owned and managed by more than one person. The partners are jointly responsible for all aspects of the business and will share the profits. Partnerships have a requirement to complete and submit a self-assessment tax return to HM Revenue and Customs (HMRC).

What is a partnership tax return?

There are two returns that must be completed for partnerships:

  • Partnership tax return

All partners are jointly responsible for the completion of the partnership tax return. The total partnership profits, losses and other income are allocated to the individual partners on the return according to their profit share entitlement.

  • Individual tax return

Each partner is responsible for the completion of his or her own individual tax return. They must complete the partnership pages from the details entered into the partnership return.

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How do I complete a partnership tax return?

The key parts of the partnership return which need to be completed are:

Box to be completedComments
Name of business – Boxes 3.1 Name of business and 3.2 Description of partnership trade or professionAn example of the trade or profession could be hairdressing.
Accounting period -Boxes 3.4 and 3.5 These are the dates that the accounting period starts and finishes. For example, the year ending 31 March 2025 will start on 1 April 2024 and finish on 31 March 2025. 
Boxes 3.7 Date of commencement (if after 5 April 2015) and 3.8 Date of cessation (if before 6 April 2016)These boxes are not always completed. 
Capital allowances – Boxes 3.13A through to 3.23If any capital allowances are claimed they need to be entered here. You will probably need the services of an accountant to deal with areas like this. 
Capital allowances – Boxes 3.24 through to 3.25These boxes can be used if the partnership turnover was less than £85,000. 
Box 3.83This figure will often be the same as box 3.26.
Partnership information incl. mixed partnerships – Boxes 1 – 5 and A – 11The details are transferred from the boxes we have already looked at. There are some complex rules regarding mixed partnerships. It is advisable to speak to an accountant regarding boxes 4 and 5. 
Individual partner details – boxes 6 – 10 and Profit box 11 The individual details will need to be completed for every partner. Each partner will need to enter their profit share. 

The Partnership Tax Return form 2024 for the year ended 5 April 2024 (SA800) can be accessed here. 

How do I complete the partnership pages of my individual tax return?

In the individual’s return, a separate page must be completed for each partnership an individual belongs to. The key parts to complete are:

Box to be completedComments
Box 1 Partnership reference number and Box 2 Description of partnership trade or professionThe is the unique tax reference (UTR) of the partnership, for example, 4564564564. An example of a trade or profession could be hairdressing.
Boxes 3 and 4These boxes should only be completed if the individual has joined or left a partnership during the tax year.
Boxes 6 and 7These are the dates that the accounting period of the partnerships starts and finishes. For example, the year ending 31 December 2024 will start on 1 January 2024 and finish on 31 December 2024. If a partner has joined or left in a tax year, their basis period may be different.
Box 8The figure here is the individual’s share of the partnership profits.
Box 9If the individual has joined or left a partnership during the tax year, their basis period may not be the same as the partnership’s accounting period. An adjustment (which may be positive or negative) may need to be made.
Box 20The individual’s taxable profits are calculated after any adjustments and losses available. In many cases, the figure will simply be the partner’s share of profit for the accounting period.

The Partnership Tax Return 2024 short form for the year ended 5 April 2024 (SA104S) can be accessed here. 

How do I calculate the share of profits?

A partners share of profit is calculated in the following way:

  • Calculate the partnership profit

In the partnership accounts, expenses are deducted from the income to arrive at the profit. It is advisable to use the services of an accountant when calculating this. 

  • Business expenses

In order for expenses to be allowable for tax purposes they must be “wholly and exclusively” incurred for business purposes. 

  • Non business expenses

For tax purposes any expenses which are disallowed must be added back and this will increase the profit which is taxable.

  • Split the profit

The profit is split between the partners in accordance with their agreement. This may simply be an equal share to each partner.

How do I file my partnership tax return?

A partnership tax return can be filed online with HM Revenue & Customs (HMRC), but you will need to purchase commercial software in order to do this. The tax return deadline is 31 January following the end of the tax year.

Alternatively, a paper form can be completed; the filing deadline is 31 October following the end of the tax year.

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