Partnership HMRC self assessment

DJPDorset

Hello 
My daughter and I formed an unlimited partnership and are now trying to navigate the HMRC tax return. She can't seem to enter annual turnover as HMRC warning comes up to say it's too much ( it's around 50k ) 
Second issue is that we can't work out how to divide net profit so each are looking at a tax bill that's not accurate as it's double what we've both respectively received. 

I know we need an accountant but don't have the funds to pay for one right now. Can anyone please advise

Lastly, if we can't work it out then would we be able to declare our profit by dividing everything and entering a sole trader self assessment each - doesn't feel right but it's the only way we can seem to explain our individual earnings. 

Thank you in advance 

DullGreyGuy

First of all... which tax return is she trying to complete? The partnerships or hers? If hers, which section is she trying to complete?

[Deleted User]

DJPDorset said:

Hello 
My daughter and I formed an unlimited partnership and are now trying to navigate the HMRC tax return. She can't seem to enter annual turnover as HMRC warning comes up to say it's too much ( it's around 50k ) 
Second issue is that we can't work out how to divide net profit so each are looking at a tax bill that's not accurate as it's double what we've both respectively received. 

I know we need an accountant but don't have the funds to pay for one right now. Can anyone please advise

Lastly, if we can't work it out then would we be able to declare our profit by dividing everything and entering a sole trader self assessment each - doesn't feel right but it's the only way we can seem to explain our individual earnings. 

Thank you in advance 

A partnership return cannot be completed online without specialist software. It is, unfortunately, too late to complete the paper version. 

Has the partnership been registered with HMRC and a separate UTR obtained? If not, it is not possible to complete an online individual self-assessment return for any partner as, from experience, the partnership section of the return cannot be completed online without a partnership reference number (it cannot be left blank). The portal will show an error message.

On the final paragraph - it is not possible to choose this option as neither of you were sole traders. 

The solution will depend on whether 

a) the partnership has been registered.
b) a partnership UTR has been received.
c) you have the appropriate software. 

BoGoF

And you pay tax on your share of any profit not what you 'received' from it.

Camster

I have had a partnership with my wife for a number of years, and they way it works for is is that the partnership is registered with HMRC and is assigned a UTR number by HMRC. To submit your partnership accounts online, you need to use software recommended by HMRC for this. If I recall, HMRC have a list of software on their website. We use a service called e-filing which we found was the cheapest option, and works fine.

Both partners also need to submit self assessment tax returns, to give the details of their share of the profits from the partnership and any other income they have. This can be done online on the HMRC website without using any specialist software, and I've always found this pretty straightforward.

As far as the division of profits is concerned, I would suggest that you have a formal partnership agreement drawn up that sets out the percentage of profits each partner will receive.

We did use the services of an accountant for this for a number of years, but for quite a few years we have just done this ourselves and saved on the accountancy fees.