What is SA400?
SA400 is a form used to register a business as a partnership for self assessment purposes. HMRC needs the SA400 to ensure the partnership is ready to complete a partnership self assessment tax return.
The partnership needs to elect a nominated partner who is responsible for sending the partnership tax return and keeping business records.
Each partner personally shares any business profits and losses and pays tax as an individual through their own self assessment tax return.
What do I need to complete SA400?
To register your partnership you need to name a nominated partner who then completes the SA400.
The SA400 form can be submitted online or printed off and posted to HMRC.
SA400 has two pages and you will need the following information to complete the form:
- Name of the partnership.
- Partnership address.
- Business phone number.
- Type of business.
- Date of partnership commencement.
- Partnership type.
- Partnership accounting date.
- Name and address of your nominated partner.
What are the different types of partnership?
There are three types of business partnership. You need to let HMRC know what type of partnership your business is being set up as.
Ordinary partnership
An ordinary partnership is the most common and comparatively simple way for two or more people to share a business.
There is no legal existence out with the partners themselves with the partnership having to be dissolved if one of the partners resigns, dies or goes bankrupt. The business can continue but not as per the initial partnership.
Limited partnership
A limited partnership can include a mix of limited partners and ordinary partners.
The liability for a limited partner is limited to the value of money invested in the business and personal guarantees relating to any finance raised.
Limited partnerships need to register with companies house who in turn tell HMRC about the limited partnership. HMRC automatically set up the partnerships records so you don’t need to make a separate registration with HMRC.
Normally accounts and an annual return do not need to be submitted to companies house.
Limited liability partnership
Limited liability partnerships or LLPs for short are classed as a corporate entity with members have a limited liability. There must be at least two designated members of a limited liability partnership.
LLPs need to register the partnership with companies house who let HMRC know about the partnership. HMRC will then automatically set up a record for the LLP meaning a separate registration with HMRC is not needed.
The LLP must submit an annual tax return and file accounts with companies house.
Do partners register for self assessment separately?
Yes, each partner has to be registered for self assessment separately and submit their own individual tax return.
An individual partner of a partnership needs to complete a form SA401. The SA401 tells HMRC that you have joined a partnership for self assessment and class 2 NIC purposes.
A partner that is a company or another partnership should complete the form SA402.
Partnership UTR number
After the SA400 has been filed HMRC will send to your registered partnership address your partnership unique tax reference number (UTR number).
The UTR number is made up of ten digits and will be needed when you complete your partnership tax return.
The partnership UTR number will be posted normally within about 28 working days.
