Much of the information about self-assessment is about sole self-employed workers so it can be hard to find good quality information about tax returns when they apply to business partners. Luckily, the experts at DSR Tax Claims are here to help. Our helpful guide to self-assessment tax returns and business partners should answer all of your questions. Our tax preparation specialists are always on hand to help so give us a call on 0330 122 9972.
When should you file a self-assessment return if you are a business partner?
If you are the nominated partner in a business partnership then it is your responsibility to deal with the partnership’s tax returns. This tax return is separate to your own personal tax return, which you would also be responsible for. If your business partner is the nominated partner, registered with HMRC, then your business partner is responsible for the self-assessment tax return for the partnership. You will still need to file your own personal tax return though.
The reason that your partnership also requires a separate self-assessment return is because it is still classed as a business by HMRC, even if it doesn’t have the same legal footing as a limited company. A partnership’s tax return will show the profits and losses of the partnership and therefore, each partner’s share of those. This information will be needed for your own self-assessment return.
What records will you need?
If you are responsible for running a partnership, then you will need to keep the following records at the very least:
- Details of capital expenditure
- Details of employees
- Payroll records
- Business bank statements
You will need to keep this information for at least four years, in case HMRC ask to see it. They can take a dim view of partnerships and companies who fail to keep adequate records.
What if you are already taxed through PAYE?
You will still need to fill in a tax return for any income you earn through your partnership, even if you have a main job that is taxed via PAYE. The tax you pay through PAYE, as stated by your tax code, will only apply to the income you earn from your job and HMRC need to know about all of your income streams.
Our experts at DSR Tax Claims know how complicated it can get when you start dealing with taxes, so our tax preparation specialists offer a self-assessment preparation service and this could be invaluable if you are having to deal with a complex bunch of tax returns. We will also deal with HMRC on your behalf so your free time can be put to better uses, so call our team on 0330 122 9972 – we are the tax experts you can trust.