How to File Your SA800 Partnership Tax Return

But here's the catch: HMRC doesn’t offer free software for filing SA800 forms online. So, unless you want to submit by post (and risk delays), you'll need to use approved third-party software, like Taxd’s £65 online SA800 service.

In this guide, we’ll cover everything you need to know: how to file, what you’ll need, key deadlines, penalties, and how Taxd can make the whole process quick and stress-free.

What is the SA800 Partnership Tax Return?

The SA800 is a tax return that reports your partnership’s income, expenses, and profit or loss for the tax year.

While partnerships don’t pay tax themselves, the SA800 allows HMRC to calculate each partner’s share, which they report individually.

Who Needs to File an SA800?

Any business structured as a partnership during the tax year is required to file an SA800. This includes:

• General Partnerships: Businesses with two or more individuals running a trade together.
• Limited Liability Partnerships (LLPs): Partnerships that have limited liability status.
• Property Partnerships: Groups of individuals jointly owning rental properties as a business.

Even if the partnership has been inactive or made no profit during the tax year, the SA800 still needs to be submitted.

What Information is Required for the SA800?

To complete the SA800 accurately, partnerships must gather and report the following details:

• Business Income: Total revenue from all sources, including sales, services, rental income, and other earnings.

• Business Expenses: All allowable expenses incurred during the tax year, such as rent, utilities, salaries, advertising, and office supplies.

• Capital Allowances: Deductions for significant purchases like machinery, vehicles, or other capital expenditures.

• Profit or Loss Allocation: Details on how profits or losses are divided among partners, typically outlined in the partnership agreement.

• Partner Details: Names, addresses, and tax references for all partners involved during the tax year.

Step-by-Step Guide to Partnership Tax Filing the SA800

Step 1: Register the Partnership

Before filing, ensure the partnership is registered with HMRC for Self Assessment. Each partnership receives a Unique Taxpayer Reference (UTR) number, which is required for submitting tax returns.

Step 2: Choose a Filing Method

Partnerships can submit the SA800 either online or via paper.

Filing online is faster and more secure, but there's a catch:

HMRC doesn’t let you file the SA800 online directly through their site.

Instead, you’ll need to use:

• Third-party commercial software (like Taxd), or
• An accountant (which is usually much more expensive)

Taxd lets you file your SA800 for just £65, saving you from paperwork and accountant fees.

Step 3: Complete the SA800 Form

Accurately enter all required information. Double-check figures to ensure they align with your financial records.

Step 4: Submit the Return

• Paper submissions must be filed by 31 October following the end of the tax year.
• Online submissions must be filed by 31 January of the following year.

Missing the partnership tax return deadline can result in penalties.

Example Scenario: Filing an SA800

Imagine a partnership, "Green Gardeners," comprising two partners, Alice and Bob. They use Taxd to file their SA800 Partnership Tax Return.

During the 2023-2024 tax year, the business earned £100,000 in income and had £40,000 in allowable expenses, resulting in a £60,000 profit. According to their partnership agreement, profits are split 50/50.

• They file their SA800 partnership tax return with Taxd to ensure quick processing.
• Alice and Bob each report £30,000 as income on their individual tax returns.

Penalties for Late Submission

Failing to submit the SA800 on time can result in penalties:

• £100 fine for missing the deadline.
• £10 per day for returns over three months late (up to £900 max).
• £300 or 5% of the tax due for returns over six months late.

Each partner is responsible for their share of penalties, reinforcing the importance of timely submission.

Filing the SA800 Online

Filing online is the most efficient method. Here’s how:

1. Register for HMRC Online Services – Ensure the partnership is registered to file online.

2. Use Approved Software HMRC requires compatible software for partnership returns.

3. Complete and Submit the Return Input all necessary information and submit before the deadline.

Benefits of Keeping Accurate Partnership Records

Maintaining accurate records is crucial for smooth tax filing and financial management. Proper bookkeeping allows partnerships to track income, expenses, and profit distributions efficiently. Using accounting software or hiring a professional accountant. This helps streamline record-keeping and ensure compliance with HMRC regulations.

Additionally, well-maintained records make it easier to resolve discrepancies, respond to HMRC inquiries, and plan future tax obligations effectively. By keeping detailed financial records, partnerships can avoid unnecessary stress and potential fines while ensuring transparency among partners.

Final Thoughts

Filing the SA800 can be confusing, especially since HMRC doesn’t offer a free way to do it online.

But with the right tools, like Taxd’s easy £65 filing service, you can handle it in minutes, stay compliant, and avoid costly penalties.

Common FAQs

1. Do partnerships need to pay tax?

No, partnerships don’t pay tax directly. Profits or losses are allocated to partners, who report them on their personal tax returns.

2. Can I file the SA800 myself, or do I need an accountant?

You don’t have to hire an accountant, you can file it yourself using approved software like Taxd, which costs just £65 and handles everything online.

3. What happens if a partner joins or leaves during the tax year?

The SA800 should reflect any changes in partnership composition. Profits or losses are allocated based on the time each partner was involved.

4. Is there a way to appeal a late filing penalty?

Yes, if you have a reasonable excuse (e.g., serious illness or postal delays), you can appeal by contacting HMRC.