Quick answer
A partnership files an SA800 return showing its income, costs and profit split, and each partner reports their share on their own Self Assessment return using the partnership pages (SA104). Each partner is personally responsible for paying the tax on their share.
Updated October 2026 · Figures based on 2025/26 rates
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The partnership return
One partner, the nominated partner, usually files the SA800 for the whole partnership, reporting profit and how it is shared. The partnership itself does not pay income tax — it is a reporting vehicle.
Individual partner returns
Partners enter their share of profit on their own SA100 return, along with other income, and pay Income Tax and National Insurance on it. Each partner is taxed as an individual, not as an employee of the partnership.
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Deadlines
The partnership return and each partner’s return are due by 31 January online, with a paper deadline of 31 October. Late filing penalties can apply to each partner individually, so the nominated partner should not leave the SA800 to the last minute.
Common issues
Late partnership returns carry penalties for each partner, and errors in profit shares can affect everyone’s tax. The most frequent problems are missed deadlines, incorrect profit splits and partners who do not realise they must also file a personal return.
How partnership taxation fits together
A partnership is not taxed as a separate entity for income tax. Instead, the partnership works out its overall profit, divides it between the partners according to the partnership agreement, and each partner is taxed on their own share. The SA800 is the partnership’s own return. It reports the profit and how it is split, and it is filed by a nominated partner, normally with a separate Unique Taxpayer Reference for the partnership. Each individual partner then completes their own SA100 return, with the partnership supplementary pages, and enters their share of the profit from the partnership statement. Both the partnership return and each partner’s return are due by the usual deadlines: 31 October for paper and 31 January for online filing. See the official Self Assessment: Partnership Tax Return (SA800) guidance for the form itself.
Because the partners’ returns depend on the partnership’s figures, delays by one person can hold everyone up. Agree early who is responsible for preparing the accounts and the SA800, and make sure the partnership statement is produced well before the personal deadline. For deadline planning, see our 31 January 2027 preparation plan.
Worked example: two partners sharing £90,000
This is an illustrative example for two partners in England who share profits 60% and 40%, with no other income and no other adjustments. The partnership profit for the year is £90,000.
| Partner A (60%) | Partner B (40%) | |
|---|---|---|
| Share of profit | £54,000 | £36,000 |
| After £12,570 allowance | £41,430 | £23,430 |
| Income tax | £37,700 x 20% + £3,730 x 40% = £9,032 | £23,430 x 20% = £4,686 |
| Class 4 NI | £37,700 x 6% + £3,730 x 2% = £2,336.60 | £23,430 x 6% = £1,405.80 |
| Total | £11,368.60 | £6,091.80 |
Each partner is personally responsible for their own tax. The partnership agreement decides how much each partner’s share is, so it is worth reviewing it when the business changes, for example if one partner takes on more work or a new partner joins part way through the year. Our guide to Class 4 National Insurance for the self-employed shows why Partner A pays proportionally less NI on the top slice of profit.
What changed with basis periods
From the 2024/25 tax year, partners are taxed on profits arising in the tax year from 6 April to 5 April, rather than on the accounting period ending in the year. Businesses with a different accounting date have had to apportion profits, and some had transitional profits spread over several years. If your partnership has a non-standard year end, read our guide to basis period reform. Making Tax Digital for Income Tax is also being introduced in stages, based on each individual’s qualifying income, so check current HMRC guidance on how it affects partners.
Common mistakes
- Assuming the partnership pays the tax. Each partner pays their own.
- Missing the partnership return deadline. Penalties can apply to each partner, so check current HMRC guidance.
- Entering the wrong profit share on a partner’s return.
- Not keeping the partnership agreement up to date, so allocations are disputed.
- Mixing personal and partnership transactions in the same account.
- Forgetting that each partner may need to make payments on account.
Practical checklist
- Confirm the partnership UTR and the nominated partner.
- Prepare partnership accounts and the tax adjustment of profit.
- Agree the profit shares and record them in writing.
- File the SA800 and send each partner their statement.
- Each partner completes their SA100 with the partnership pages.
- Each partner sets aside money for tax and National Insurance. See how to calculate self-employed profit for the underlying method.
How SATR can help
Our qualified UK accountants can help partners file their personal returns online from a fixed fee from £199 + VAT, and can also support the partnership return. See our Self Assessment service for the self-employed.
This is general information, not personal tax advice.
Records a partnership should keep
Good records protect every partner. At a minimum, the partnership should keep sales invoices, purchase receipts, bank statements, any loan and capital account records, and the signed partnership agreement, along with working papers showing how the tax-adjusted profit was reached. Each partner should also keep a copy of their partnership statement, which is the document that supports the figures on their personal return. Records should be kept for five years after the 31 January filing deadline, and longer if HMRC has opened an enquiry. It is also sensible to agree who holds the originals, because if the nominated partner leaves, the others still need access to the information. A shared online folder, with clear naming, makes the annual process far smoother and reduces the risk of arguments over missing paperwork when the deadline approaches.
Frequently asked questions
Does the partnership itself pay tax?
No. Partners pay tax individually on their share of profits. The partnership is transparent for income tax purposes.
What about LLPs?
LLP members are taxed like partners and similar rules apply. Each member reports their share on a personal Self Assessment return.
Who files the SA800?
One partner, usually called the nominated partner, files the partnership return on behalf of the partnership, but all partners remain responsible for making sure it is filed on time.
Do I need both an SA800 and an SA100?
Yes. The SA800 is the partnership’s return, and each partner also files a personal SA100 with the partnership supplementary pages to report their share of profit.
Can partners be paid a salary or interest on capital?
A partnership agreement may allocate profit using fixed amounts or interest on capital before sharing the remainder, but this is a profit allocation, not employment pay. Check current HMRC guidance and the written agreement.
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The Bottom Line
A partnership files an SA800 showing its profit and how it is split, and each partner reports their share on a personal SA100 return with the partnership pages. Each partner pays their own Income Tax and National Insurance, and late filing penalties can hit every partner.
SATR’s qualified UK accountants handle partnership and partner returns for a fixed fee from £199 + VAT. Order online now or see our partnership Self Assessment service.
