A taxpayer must file a Self-Assessment (SA) tax return if they are a partner in a partnership and meet any of the following criteria related to partnership income:
- Income from Partnership: If you receive any share of partnership profits (taxable or otherwise), you must report it on your personal tax return. This includes trading or professional profits, losses, or other income allocated to you via the Partnership Statement. Even if the partnership files its own return (SA850), each partner is individually liable for reporting their share.
- New or Changed Partnership Status: If you became a partner between 6 April 2024 and 5 April 2025, you must register for Self-Assessment and Class 2 National Insurance Contributions (NICs) immediately (via www.gov.uk/register-for-self-assessment/self-employed). If you left a partnership in this period, you must notify HMRC to avoid overpaying tax and ensure correct NICs (via www.gov.uk/stop-being-self-employed).
- Taxable Profits or Losses: You are liable if your share of partnership profits exceeds £1,000 (general untaxed income threshold), or if you have losses to claim relief on (e.g., set off against other income). Losses can be claimed up to £50,000 or 25% of adjusted total income per year.
- Foreign Tax or Adjustments: If claiming foreign tax as a deduction or Foreign Tax Credit Relief (HS263), or if adjustments are needed (e.g., for basis period reform, averaging, or change in accounting practice).
- Transition Profits from Basis Period Reform: If affected by reforms in 2023-2024 (e.g., became a partner before 6 April 2022), remaining transition profits (spread over 4 years at 25% each, or accelerated) must be reported, triggering SA liability.
- General SA Triggers: Beyond partnership-specific, if partnership income pushes total income over £100,000 (reducing Personal Allowance), or if you have untaxed income, capital gains, or other factors requiring SA (e.g., High Income Child Benefit Charge).
- Penalties for Non-Compliance: Failure to register or file can result in penalties (e.g., £100 fixed, plus daily £10 after 3 months, up to £300 after 6/12 months per partner). Deliberate errors can lead to penalties up to 100-200% of tax due, or prosecution.
If your only income is from a partnership and below thresholds (e.g., no tax due), you may still need to file if registered or if HMRC issues a notice. Always check via HMRC helpline or online account.
Differences Between Kinds of Partnerships
This post primarily cover general UK partnerships but highlight differences:
- General UK Partnerships: Treated as transparent for tax; profits/losses flow to partners’ personal returns. Use partnership’s tax reference in Box 1 (SA104S/F). Partners pay tax on their share individually. Includes trading/professional businesses.
- Foreign Partnerships: Use your own Unique Taxpayer Reference (UTR) in Box 1 instead of the partnership’s. May involve foreign tax claims (Box 12). Subject to same rules but with potential double taxation relief.
- Limited Partnerships or LLPs (Limited Liability Partnerships): Not explicitly differentiated in notes, but treated similarly for tax (transparent). However, LLPs are bodies corporate; members may have salaried elements (reported as employment income). Losses may be restricted if limited liability applies.
- EEIGs (European Economic Interest Groupings): Special rules in SA850: If UK-registered, manager files; otherwise, addressed member files. Similar to partnerships but for cross-border EU activities. Penalties apply per member.
- Investment vs. Trading Partnerships: Notes focus on trading/professional profits; investment partnerships (e.g., property) use same forms but may require ‘Property’ pages if not covered in partnership return.
- Nominee or Corporate Partners: If partnership includes a company, filing deadline extends (SA850). Individual partners still file personally.
- Short vs. Full Pages: Not a partnership type difference, but form choice: Use SA104S (short) for simpler cases (e.g., no complex adjustments); SA104F (full) for detailed ones (e.g., transition profits, detailed expenses).
All types require the partnership to file SA850 (Partnership Tax Return) by 31 October 2025 (paper) or 31 January 2026 (online), providing each partner with a Partnership Statement for their personal return.
Information Required in Every Box for the Tax Return (Partnership-Related Sections)
Assuming income only from partnership, focus on SA104S (Short) or SA104F (Full) supplementary pages in your personal SA100 tax return. Use short if simple (e.g., no detailed adjustments); full otherwise. Do not use if changing between self-employment and partnership mid-year—use self-employment pages instead. Copy figures from Partnership Statement (provided by partnership via SA850). If printed form, add name and UTR at top.
SA104S (Partnership Short Pages) Boxes:
- Box 1 (Partnership reference number): Partnership’s tax reference (from Partnership Statement). For foreign partnership, your own UTR.
- Box 3 (Date joined if after 5 April 2024): DD MM YYYY you became partner (6 April 2024–5 April 2025). Register for SA/NICs if new.
- Box 4 (Date left if before 6 April 2025): DD MM YYYY you left. Notify HMRC for tax/NICs adjustment.
- Box 8 (Share of profit/loss): Figure from Box 11/12 of Partnership Statement (latest if multiple). Use minus sign for loss.
- Box 9 (Adjustment for non-12-month period or end before 31 March 2025): Any addition/apportionment to align with tax year (e.g., add/apportion shares from statements).
- Box 10 (Adjustment for change of accounting practice): From Box 11A of Statement (spread over 6 years; elect to accelerate).
- Box 11 (Averaging adjustment): Change from averaging claim (minus if reduces profit). See HS224 (farmers) or HS234 (artists).
- Box 12 (Foreign tax as deduction): Foreign tax paid (if not claiming Foreign Tax Credit Relief—HS263).
- Box 16 (Adjusted profit for 2024-25): From working sheet on SPN 4 (profit after adjustments; 0 if loss).
- Box 17 (Losses brought forward set off): Losses from earlier years (up to Box 16 amount).
- Box 18 (Taxable profits after losses): From working sheet Box K on SPN 4.
- Box 19 (Other business income not in accounts): Personal professional income (not partnership’s).
- Box 20 (Share of total taxable profits): From working sheet Box M on SPN 4.
- Box 21 (Adjusted loss for 2024-25): From working sheet on SPN 4 (if loss).
- Box 22 (Loss this year set off against other income): Current-year loss (limited to £50,000 or 25% adjusted income).
- Boxes 23–24 (Other loss relief claims): Details in ‘Any other information’ on TR7 if claimed early.
SA104F (Partnership Full Pages) Boxes:
Similar to short but more detailed. Use if complex (e.g., transition profits).
- Box 1: Same as short.
- Box 3: Same as short.
- Box 4: Same as short.
- Box 8 (Share of profit/loss): Same as short Box 8.
- Box 9 (Basis period adjustment): Adjustments for non-standard periods (do not include transition profits).
- Box 10: Same as short.
- Box 11: Same as short.
- Box 12: Same as short.
- Box 16 (Adjusted profit): From working sheet on FPN 8 (0 if loss).
- Box 16.3 (Spread of transition profit): 25% of remaining transition profits (or accelerated amount). Details in TR7 if electing acceleration.
- Box 16.4 (Losses brought forward vs. transition profit): Up to Box 16.3 amount.
- Box 17–20: Similar to short (losses brought forward, taxable profits, other income, total share).
- Box 21: Same as short.
- Box 22: Same as short.
- Other Boxes (15–76): Use self-employment full pages for detailed profit/loss calc if needed (e.g., expenses, capital allowances).
Tax Calculation Summary (SA110) – Relevant if Partnership Income Triggers Tax Due:
If partnership income requires calculation (e.g., >£100,000 or transition profits), use SA110 working sheet. Key boxes (copy from partnership pages):
- Non-savings income (Section 1): Include partnership profits/lump sums.
- Deductions/Allowances (Section 4): Personal Allowance (reduced if income >£100,000—Section 13).
- Taxable Income (Section 5): After allowances.
- Tax Due (Sections 7–8): On profits (e.g., 20%/40%/45% bands).
- NICs (Section 15): Class 2/4 on partnership profits.
- Transition Profit Charge: Calculate twice (with/without in A43) for separate charge.
Provisional figures: Use if disputing; mark ‘X’ in TR8 Box 20 and explain in TR7.
Checklist of Documents, Evidences, Receipts, Dates, Invoices, and Forms Needed to Submit a Tax Return Correctly
To file accurately (online/paper by deadlines), gather:
- Partnership Statement(s): From partnership’s SA850 (summary of your share; multiple if periods overlap).
- Partnership Accounts/Records: Invoices, receipts for adjustments (e.g., expenses, foreign tax paid).
- UTR and Name Confirmation: Your UTR (10 digits); partnership’s tax reference.
- Dates: Join/leave dates (DD MM YYYY); accounting period end dates.
- Adjustment Evidence: Bank statements/receipts for non-12-month periods, averaging claims (HS224/HS234), change in accounting practice (spread calculations).
- Loss Relief Claims: Prior-year loss records; details for set-off (in TR7 if early claim).
- Foreign Tax Documents: Proof of foreign tax paid (e.g., withholding certificates) for Box 12 or HS263 claims.
- Transition Profit Evidence: Calculations from 2023-2024 basis reform; election details for acceleration (in TR7).
- Other Income Proof: Receipts for personal professional income (Box 19).
- NICs/Registration Forms: Proof of registration if new partner.
- Tax Return Forms: SA100 (main), SA104S/F (partnership pages), SA110 (if calculating tax), Additional Information pages (Ai) if losses/other.
- Supporting Helpsheets: HS222 (taxable profits), HS227 (losses), HS263 (foreign tax).
- Financial Records: Keep all receipts/invoices for 6 years (do not submit unless requested; SA850 notes emphasize retention).
- Provisional Figure Explanation: Tribunal referral if disputing share (notify HMRC/nominated partner).
Submit via HMRC online (preferred) or paper; no attachments unless requested. If errors found post-submission, amend within 12 months