How does a partnership tax return work in the UK?

Full answer

A general partnership is tax-transparent: it does not pay tax in its own right. Instead it submits a Partnership Tax Return (SA800) showing the partnership's total trading profit or loss for the year, plus how that profit is split between the partners. Each partner then includes their share on the partnership pages (SA104) of their personal Self Assessment return and pays tax personally. The nominated partner is responsible for filing the SA800 and keeping the partnership records. The filing deadlines mirror personal Self Assessment: 31 October after the tax year end for paper, 31 January for online, with tax due by 31 January. Each partner is taxed on their profit share as self-employment income. For 2026/27 that means Income Tax at the usual bands (20% basic above the GBP 12,570 Personal Allowance, 40% higher above GBP 50,270, 45% additional above GBP 125,140) plus Class 4 National Insurance at 6% on profits between GBP 12,570 and GBP 50,270 and 2% above that. Class 2 is now voluntary at GBP 3.65 per week, relevant mainly for protecting your State Pension record if profits are below the Small Profits Threshold of GBP 7,105. Who it affects: anyone in a business partnership -- including limited liability partnerships (LLPs), which file the same SA800 and are also tax-transparent for the members. Worked example: a partnership makes GBP 80,000 profit split equally between two partners. Each declares GBP 40,000. After the GBP 12,570 allowance, each pays 20% Income Tax on GBP 27,430 (GBP 5,486) plus Class 4 NI at 6% on the GBP 27,430 above the threshold (GBP 1,645.80), before considering any other income or reliefs. Note losses are also allocated by share and can be relieved on each partner's return. Use a self-employed tax calculator to estimate the Income Tax and NI due on your individual profit share.

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