SA400 Help Please
Discussion
Any guidance appreciated, conflicting advice from Gov.
Website says When the nominated partner registers the partnership they will automatically register themselves for Self Assessment.
SA400 says In addition to registering the partnership, the nominated partner and each of the other partners, must register for Self Assessment and Class 2 NICs individually.
Anyone know for sure which it is? Does the nominated partner need to fill in a SA401 or not?
TIA.
Website says When the nominated partner registers the partnership they will automatically register themselves for Self Assessment.
SA400 says In addition to registering the partnership, the nominated partner and each of the other partners, must register for Self Assessment and Class 2 NICs individually.
Anyone know for sure which it is? Does the nominated partner need to fill in a SA401 or not?
TIA.
Partnerships have to complete a Self Assessment tax return covering the income, expenditure, profit/loss and balance sheet of the partnership. Once HMRC has been notified of the existence of a partnership, HMRC will issue a self assessment/Unique Tax reference (UTR) for the partnership.
The partnership tax return also reveals the names, addresses and split of the profits and losses of the partnership.
The partnership tax return is referred to as the SA800.
The SA400 form is the form used to notify HMRC that the partnership is being set up. It only has to be signed by ONE of the partners (referred to as the "Nominated Partner").
In addition to the above, once a partnership has been set up and HMRC notified that the partnership is in existence, the individual partners must PERSONALLY notify HMRC that they will need to complete and submit individual Self Assessment tax returns (known as the SA100). Each partner needs to do this themselves.
Once the partnership business is up and running, the normal procedure is as follows -
i) a set of trading accounts is prepared for the partnership up to its chosen financial year end date
ii) the details of the trading accounts are incorporated into the partnership tax return for the relevant tax year
iii) the profits of the partnership are split in accordance with the agreed profit sharing ratios and entered in the relevant section of the partnership tax return
iv) the partnership tax return is agreed by the partners and signed by the nominated partner. It is then submitted to HMRC. Of course, nowadays, it is better and faster to submit the partnership tax return on-line. I always attach the full set of partnership accounts and the relevant tax adjustments and schedules when submitting partnership accounts to HMRC. Although not compulsory, it is highly recommended and goes a long way to preventing HMRC from opening enquiries.
After the partnership tax return has been completed, the relevant partnership data will be available to the individual partners to allow them to complete their own personal self assessment tax returns.
I should mention the subject of penalties.
Any tax return that is not filed by the statutory submission date will pick up an automatic fine. The submission dates are 31 October for paper returns and 31 January for on line returns (another reason for going down the on line route). The fines start at £100 but escalate rapidly to higher amounts if the submission of the return is delayed further.
It is worth noting that the fine for late partnership returns starts at £100 PER PARTNER. A two partner firm will start with a £200 penalty, a three partner £300 etc.
I have to ask though, why have you chosen a partnership as your trading vehicle? Did you consider a limited company at any point?
The partnership tax return also reveals the names, addresses and split of the profits and losses of the partnership.
The partnership tax return is referred to as the SA800.
The SA400 form is the form used to notify HMRC that the partnership is being set up. It only has to be signed by ONE of the partners (referred to as the "Nominated Partner").
In addition to the above, once a partnership has been set up and HMRC notified that the partnership is in existence, the individual partners must PERSONALLY notify HMRC that they will need to complete and submit individual Self Assessment tax returns (known as the SA100). Each partner needs to do this themselves.
Once the partnership business is up and running, the normal procedure is as follows -
i) a set of trading accounts is prepared for the partnership up to its chosen financial year end date
ii) the details of the trading accounts are incorporated into the partnership tax return for the relevant tax year
iii) the profits of the partnership are split in accordance with the agreed profit sharing ratios and entered in the relevant section of the partnership tax return
iv) the partnership tax return is agreed by the partners and signed by the nominated partner. It is then submitted to HMRC. Of course, nowadays, it is better and faster to submit the partnership tax return on-line. I always attach the full set of partnership accounts and the relevant tax adjustments and schedules when submitting partnership accounts to HMRC. Although not compulsory, it is highly recommended and goes a long way to preventing HMRC from opening enquiries.
After the partnership tax return has been completed, the relevant partnership data will be available to the individual partners to allow them to complete their own personal self assessment tax returns.
I should mention the subject of penalties.
Any tax return that is not filed by the statutory submission date will pick up an automatic fine. The submission dates are 31 October for paper returns and 31 January for on line returns (another reason for going down the on line route). The fines start at £100 but escalate rapidly to higher amounts if the submission of the return is delayed further.
It is worth noting that the fine for late partnership returns starts at £100 PER PARTNER. A two partner firm will start with a £200 penalty, a three partner £300 etc.
I have to ask though, why have you chosen a partnership as your trading vehicle? Did you consider a limited company at any point?
Edited by Eric Mc on Saturday 9th January 08:32
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