Maternity Allowance and Trading Partnership

SBonStereo

Hello I wondered if you can tell me how do I account for the MA I am receiving whilst I am self employed (trading partnership 50/50 - the other partner is NOT my civil partner nor husband etc)  - I understood that this is to be treated as income on my Self Assessment but should I share it 50/50 with my trading partner and in the formal partnership accounts or should I report this 100% on my SA form and it has nothing to do with my trading partner?  Many thanks

chrisbur

This says that Maternity Allowance is not a taxable benefit

https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

SBonStereo

Thank you for your response, that is useful -  I am also just wondering if it has to appear anywhere in the partnership accounts  - I think it doesn't as it impacts the person rather than the partnership!

chrisbur

SBonStereo said:

Thank you for your response, that is useful -  I am also just wondering if it has to appear anywhere in the partnership accounts  - I think it doesn't as it impacts the person rather than the partnership!

Not really my area but I see no reason why it should appear on the partnership accounts.  Even if it was a taxable benefit it would surely need to appear on your individual tax return not the the partnership return.  As a non taxable benefit I would assume it should not appear on any tax return.