A partnership is a business which is owned and managed by more than one person. The partners are jointly responsible for all aspects of the business and will share the profits. Partnerships have a requirement to complete and submit a self-assessment tax return to HM Revenue and Customs (HMRC).
There are two returns that must be completed for partnerships:
- Partnership tax return
All partners are jointly responsible for the completion of the partnership tax return. The total partnership profits, losses and other income are allocated to the individual partners on the return according to their profit share entitlement.
- Personal tax return
Each partner is responsible for the completion of his or her own personal tax return. They must complete the partnership pages from the details entered into the partnership return.