Another Self Assessment Thread

[WolfieBot]

My partner and I setup a business last year. The early part of the year was essentially buying equipment and creating products, for which we started selling online from around August onwards.

So for tax year 2016/17 ending April 2017 we are at a small loss.

I'm aware we should be filling out SA800 for the partnership accounts, and then SA100 for each of us.

I previously in the year registered (I think) everything with HMRC. The partnership has a UTR, I have a UTR and have now enrolled online for self assessment so should have my activation code for that this week (I know I know last minute...)

We can't find my partners UTR code though and did not have a reminder for self assessment for her. I'll ring HMRC today and see if they can send it out so she can enrol and hopefully it'll be done in time.

My main question though is how do we fill out the SA800? It lists a load of commercial software for this but I was under the impression HMRC had some free software available?

If not then what is the most recommended software to use? I've been using wave accounts for the general bookkeeping so have all the company finances in order, it's just a case of submitting them which I'm struggling with!

Thanks in advance.

[Eric Mc]

What was the ACTUAL date of start up (and I mean the PRECISE date)?

[WolfieBot]

23rd Feb 17 was when the major tooling we needed was purchased. Partnership was registered in May 17.

[Eric Mc]

So, trading did not begin until May 2017. Therefore as far as the business is concerned, nothing actually happened in tax year 2016/17.


The first partnership accounts that need to be prepared will start sometime in May 2017 and the first Partnership Tax return that needs to be completed will be for tax year 2017/18.

The assets that were purchased in advance of the partnership being formally set up can be introduced into the partnership at the /ate the partnership commenced trading and any Capital Allowances claimable on those fixed assets can be claimed in the 2017/18 tax return.

Why a partnership?

[WolfieBot]

The HMRC portal for the partnership is saying I have to submit by the 31st January though? If I don't do this will I not get a fine for late submission or is there a way I can tell them we didn't start until the following tax year?

Why a partnership as apposed to what else?

Thanks for your help so far Eric, much appreciated!

[Eric Mc]

WolfieBot said:

The HMRC portal for the partnership is saying I have to submit by the 31st January though? If I don't do this will I not get a fine for late submission or is there a way I can tell them we didn't start until the following tax year?

Why a partnership as apposed to what else?

Thanks for your help so far Eric, much appreciated!

1st of all, have you engaged an accountant?

Secondly, if not, why not?

You must have notified HMRC that you started the partnership sometime in tax year 2016/17.

For clarification, you refer to a single "letter" from HMRC regarding a self assessment tax return. Is that letter asking for -

a) the partnership tax return
b) your personal tax return
c) the other partners' tax return(s)

If you had notified HMRC correctly about the commencement of a partnership, multiple tax return letters would have been sent out to the partnership and all the partners..

I was asking "why a partnership?" because most people don't use a partnership set up these days, preferring to set up a limited liability company.

[WolfieBot]

Eric Mc said:

1st of all, have you engaged an accountant?

Secondly, if not, why not?

You must have notified HMRC that you started the partnership sometime in tax year 2016/17.

For clarification, you refer to a single "letter" from HMRC regarding a self assessment tax return. Is that letter asking for -

a) the partnership tax return
b) your personal tax return
c) the other partners' tax return(s)

If you had notified HMRC correctly about the commencement of a partnership, multiple tax return letters would have been sent out to the partnership and all the partners..

I was asking "why a partnership?" because most people don't use a partnership set up these days, preferring to set up a limited liability company.

Not yet, I thought (naively) that the returns this year would be relatively simple so I could do them myself and then get an accountant involved this year now trading has actually started.

Looking through my emails it looks like I registered the partnership on the 20th May.

The letter refers to b), my personal tax return.

We went with a partnership as it seemed simpler. It's a small business at the moment which we both work part time on outside of full time jobs with the eventual plan being that my fiancée takes it forward full-time. As it grows we will re-evaluate whether it should be limited. (Or when we engage an accountant and are advised to )

Incidentally is this the sort of work that you might take on? (Not this close to the return deadline obviously)



This is the screen on the partnership login that was making me think I should be doing returns for 16/17.

[Eric Mc]

YHM.

[WolfieBot]

Thanks Eric, will try and call you this afternoon.