Self Assessment Income from partnerships

Return to menu

	Income from partnerships BACK to MAIN PAGE			In this section you are obliged to report on your share of the income if you carried on a trade, profession, or vocation as part of a partnership. A change to the law (The Social Security Contributions (Amendment) Regulations 2001/45) now means that from 31 January 2001, individuals are obliged to notify the Inland Revenue within 3 months of the end of the month in which trading commences. Failure to do so may result in a £100 fine. The partnership will also need to complete a separate self assessment return, that gives details of the trading results for the period, and how the available profits or lossess was divided up between the partners. It will be this information you will need to copy across from the partnership return to your own personal tax return.
	The records you need to keep			Please read the infosheet on Record Keeping for further guidance on what constitute the proper accounting records you need to maintain. We also provide a check-list of the books and documentation we will need just after your accounting year-end, so that we can begin preparing your financial statements.
	IR35			The IR35 tax regulations may affect the way the partnership pays tax on certain chargeable activities of its partners. It will only affect those fees, where the personal services of the partner are charged on to a client in a contract which assumes the characteristics of a quasi-employment arrangement. Status of employment is a tricky branch of tax law, so please read our infosheet on IR35 for further details. If you have any doubts that these regulations may apply to your partnership then do not hesitate to take professional advice.