Hi, Im helping a friend with their self assessment. I have done S.A's before but not for a partnership. I have been told a few different things and im abit confused. HMRC have helped with the confusion! My friend has registered online ready to do his individual S.A but we have been told (by HMRC) that he also needs to register for a seperate user ID for the partnership statement/S.A...any ideas? Also i have been told he needs some 3rd party software to do the partnership statement. I have enquired about the where and how much, im just not sure if this is deffinately needed. Also on his individual S.A how does he show up his partners profit? Not sure if it goes into the 'Wages' box. Im so sorry to sound dumb but it's the first partnership i've helped with.
I am waiting for a technical advisor to get back to me from HMRC but seeing as though i'm getting different responses from the same department i thought this forum was a much better alternative.
Yes they will probably need another ID, you have to be registered as an organisation to submit the partnership return, not as an individual (for your own SA).
You can file the partnership return on-line, but HMRC don't provide any equivalent of their SA software to do it - you will need to purchase 3rd party software (e.g. TaxCalc which would be £45 +VAT)
Given the situation with the the above, it may make sense to get someone who is registered as an agent to submit on their behalf. Could also be touch-and-go to get all the registration etc done to submit by the month end.
There is an additional page for the SA form for Partnership details. Basically, you give details of the Partnership, UTR etc and that individuals share of the profits.
Thank you for your reply. At least now i know for definate that he need the third party software. HMRC havent been very forthcoming and im still waiting for a call back...a week on! This is a shame as it will be my friend who will be penalised for late return and payment...and we have been asking HMRC these questions for sometime now and no-one seems to be able to help!
on his own SA, he does not show any other income but his own - that is what the partnership form is for - to show the total profit and then the split between all parties. Hope that helps on that one.
So sorry to be a pain...but i need to get it right,
The company had a profit of £30,000...so shared was £15,000 each, what do i put as a profit on the individual S.A? As the full profit has been entered so its showing as this individual will get taxed on the whole profit. This is the part im unsure about, i know it goes on the partnership statement (when i finally see it) but not sure how to show the other half of the profit (on the individual S.A) that went to his partner. Does this go in the 'Wages/Salary' box?
you should only be putting on your clients share of the profit for the partnership on his SA, ie 15,000, and not the income/expenditure from it - this all goes on the partnership return, from which you get these figures from. If you look at the form, it does state share of profit on it.
