If you run a partnership in the UK and are unsure on how to file partnership tax returns, we can help. As tax advisors London firms rely upon for guidance in all matters HMRC, we can help you navigate some of the government’s trickier financial legislation to ensure that you are always above board and paying what you are required to pay. Missing out on this can result in a hefty fine – and more besides. Therefore, it is essential that you understand the rules as far as you possibly can! Let us make partnership tax rules crystal clear for you.
To set up for partnership tax returns you will, of course, need to choose a business name and a nominated partner. You’ll then register with HMRC directly, registering for VAT if you expect to see turnover of more than £83,000 annually. What you might not know is that, as a partnership, you and your nominated partner will both need to file personal returns as well as a partnership tax return that is signed by both you and your nominee. You’re going to need to make sure that all the information you include is accurate and correct to the best of your knowledge, and that you record all investments, assets and other financial documents that are likely to impact on your records. While HMRC will not request any of your financial records unless they are performing randomised checks, it is good practice to keep them just in case.
As with standard returns for self-employed businesses and smaller firms, you will need to detail any changes made to your partnership in the last tax year, and will also need to make sure that you are both responsible for the timely and accurate completion of the main return. This also means that you will need to fill in partnership pages of your individual return, where you will be asked to provide further information on what you and your partner have done over the past tax year. Many accountants Harrow and beyond will tell you that while HMRC requires a series of forms and similar information from partnerships on their specific returns, these forms and the legislation you need to follow are not particularly complex when broken down.
As tax advisors London firms rely upon, we can help you and your business partner navigate even the most complex of tax returns – without the headaches or the financial stress!