If you’re in a business partnership, filing a partnership tax return isn’t optional. Ignoring it could mean you face fines and even an HMRC investigation. Who needs to file one, and how does it work?
Let’s explain.
What Is a Partnership Tax Return?
A partnership itself doesn’t pay tax on its profits; instead, the partners do. But the partnership must file partnership tax return to report income, expenses, and how profits (or losses) are split between partners.
Think of it like a financial snapshot of the business. HMRC uses it to make sure each partner pays the right amount of tax on their share.
Who Needs to File One?
If your business is set up as a general partnership (where two or more people share profits and responsibilities), you’ll almost always need to file. This means:
Traditional partnerships – The most common setup where partners share profits and liabilities.
Limited partnerships (LPs)– Where some partners have limited liability (but the general partner still handles filings).
Trading partnerships – Businesses selling goods or services.
Property partnerships – Joint ventures renting out properties.
Even if the partnership didn’t make any profit (or actually lost money), you still need to file a partnership tax return. The only exception: if the business never traded or earned income at all, but that’s rare.
What About LLPs?
Limited Liability Partnerships (LLPs) are a bit different. They must file both LLP accounts with Companies House and a partnership tax return with HMRC. If you’re in an LLP, you’ve got extra paperwork to stay on top of.
Who’s Responsible for Filing?
Where people get confused is that the partnership as a whole doesn’t pay tax, but one partner (usually the “nominated partner”) must:
Register the partnership with HMRC (if it’s new).
File the SA800 return by the deadline.
Provide each partner with their share of profits/losses so they can report it on their Self Assessment.
If there’s no nominated partner, all partners are equally responsible; it’s best to pick someone organised to handle it!
Key Deadlines to Avoid Penalties
Missing deadlines = instant fines. Here’s what you need to know:
Paper returns– Must be filed by October 31 after the tax year ends.
Online returns – Due by January 31 (same as Self Assessment).
Late filing? You’ll get an automatic £100 penalty, with more fines piling up after 3, 6 and 12 months.
