Partnership Tax Return Accountant

If you run your business through a partnership you will need to report your income and expenses on a partnership tax return.

HMRC requires a partnership to submit a tax return each tax year and each partner to submit a personal tax return as well.

Paying any tax due from partnership income is done through completing an individual self assessment tax return.

To take care of your partnership tax return, individual tax return, bookkeeping and accounts you should consider using a partnership accountant.

Why should I use a Partnership Accountant?

Apart from saving you time it can reduce the chances of making errors in record keeping and on your partnership and individual tax returns.

If you get your tax returns wrong you run the risk of either paying too little (and getting into trouble with HMRC) or paying too much and losing money that could have been saved.

In addition an accountant can assist in calculating your personal tax bill and find ways to reduce it which is something that’s particularly useful if your tax affairs are not simple.

Some of the main areas an accountant can help with your partnership include:

  • HMRC partnership registration for new partnerships.
  • HMRC individual tax return registration for each partner.
  • Calculating the partnerships profit or loss.
  • Distributing the partnerships profit or loss in accordance with the partnerships agreement.
  • Completion and submission of the SA800 partnership tax return to HMRC.
  • Completion and submission of partner individual tax returns including the partnerships profit or loss figures.
  • Guidance on filing dates and deadline for paying income due to HMRC.

Partnership Tax Return Compliance and Accuracy

Having HMRC compliant records to complete your partnership return is essential to the tax return completion process and if HMRC ask for evidence to back up your tax return in the future.

Taking instructions from an accountant on how to keep your records is worthwhile to keep HMRC happy and it can bring added efficiencies to your business.

A partnership needs to share any profit and loss according to the profit/loss sharing arrangement of your partnership.

Making sure this is done correctly is vital to ensure both partnership and individual tax returns are completed accurately.

Knowing your accountant can complete your SA800 partnership tax return accurately and compliantly decreases the chances of HMRC finding errors and issuing penalties in the future.

Partnership filing deadlines and payment of tax

HMRC has strict filing dates for both partnership and individual tax returns and payment of any tax due.

Automatic self assessment penalties will be imposed for late filing and interest added to late payments of income tax owed to HMRC.

Having an accountant to inform you of the important tax dates for your partnership is key to avoiding unnecessary HMRC penalties.

Help with your Personal Tax Return

Declaring your partnership profit or loss has to be done on a individual tax return by each member of the partnership.

There are supplementary partnership pages included in the self assessment tax return which let you record a short or full version of your partnership income.

If you have any other forms of taxable income you should include these on the same tax return so HMRC can calculate your total tax liability from all income sources.

Your partnership accountant is well equipped to file your individual tax return entering your partnership figures as well as any other taxable income within the given HMRC deadline.

Making Tax Digital and Partnerships

Making tax digital is being implemented in stages by HMRC to digitise record keeping and how you submit data to HMRC.

HMRC will let partnerships know when they have to comply with MTD for ITSA and your accountant can keep you up to date so you don’t miss your partnership requirements and deadline for MTD.

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