Partnership (short) notes

Tax year 6 April 2018 to 5 April 2019 (2018–19)

Use these notes and 5 April 2019, put the date you joined in box 3.
If you have not already registered as a partner for
to help you fill in the Self-Assessment and Class 2 National Insurance
contributions (NICs), you must do so now.
Partnership (short) For more information, go to www.gov.uk/register-
for-self-assessment/self-employed
pages of your tax return Box 4 If you left the partnership after
5 April 2018 and before 6 April 2019,
These notes will help you to fill in your tax return.
enter the date you left
It will also help if you have a copy of the Partnership
Tax Return, which includes a summary of your If you stopped being a partner before
earnings on the Partnership Statement. 6 April 2019, put the date in box 4. Tell us as
soon as possible so you do not pay too much tax
Complete a Partnership page for each partnership
or Class 2 NICs. For more information, go to
of which you were a member and for each
www.gov.uk/stop-being-self-employed
partnership business. Where more than one
partnership statement is received from the same Box 5 Cash basis
partnership, you must report each partnership
Put ‘X’ in box 5 if there’s an‘X’ in box 3.9 of the
statement on a separate partnership page.
Partnership Tax Return.
Changing between self-employment
and partnership A For more information about cash basis, go to
www.gov.uk/simpler-income-tax-cash-basis
Do not fill in boxes 3 and 4 if you changed from
self-employment to partnership, or partnership to
self-employment, between 6 April 2018 and Your share of the partnership’s trading
5 April 2019. or professional profits
If any part of the accounting period is within your For help to calculate your taxable profits, work
basis period, to work out your profit or loss, out your basis period or overlap relief, go to
fill in the ‘Partnership (short)’ pages using: www.gov.uk and search for ‘HS222’.
• details from the Partnership Statement Boxes 6 and 7 Basis period
• boxes 9 to 32 in the ‘Self-employment (short)’ You pay tax on the profits of your basis period for
pages or boxes 15 to 76 in the ‘Self-employment the tax year. When you’ve been in business for a
(full)’ pages couple of years, your basis period is the same as
If no part of the accounting period is within your the accounting period. Put in box 6 the date on
basis period, do not fill in the ‘Partnership’ pages. which your basis period started and put in box 7
the date on which it ended.
Your name and Unique Taxpayer Reference
If you printed a copy of the ‘Partnership (short)’ If your business began between 6 April 2018
pages from the website, fill in your name and and 5 April 2019
Unique Taxpayer Reference (UTR) in the boxes Your basis period begins on the date you started
at the top of the form. You’ll find your UTR in business and ends on 5 April 2019.
on the Partnership Statement.
If your business began between 6 April 2017
Partnership details and 5 April 2018
If the accounting date in the period 6 April 2018
Box 1 Partnership reference number
to 5 April 2019 is:
Put your Partnership tax reference number in the • more than 12 months after the date your
box. If you’re a partner in a foreign partnership, business began, your basis period is the
put your own UTR in box 1. 12 months to that accounting date
• less than 12 months after the date you started
Box 3 If you became a partner after 5 April 2018,
in business, your basis period is the 12 months
enter the date you joined the partnership
beginning on the date you started
If you became a partner between 6 April 2018
SA104S Notes 2019 Page SPN 1 HMRC 12/18
If there is no accounting date in the period Tell us in ‘Any other information’ on page TR 7
6 April 2018 to 5 April 2019, your basis period is why you’ve used provisional amounts and when
6 April 2018 to 5 April 2019. you expect to give us the final figures.
If your business ended between 6 April 2018 Box 10 Adjustment for change of accounting
and 5 April 2019 practice
Your basis period begins on the day after your Copy the figure from box 11A on the Partnership
basis period for the 2017 to 2018 tax year ended, Statement. An adjustment on leaving cash basis
and ends on the day your business ended. is spread over 6 tax years; one sixth of the
adjustment income is charged to tax each year.
Boxes 8 and 9 Your share of the partnership’s
You can elect to accelerate the tax charge on this
profit or loss and the basis period adjustment
adjustment income.
If your basis period is the same as the
partnership’s accounting period, copy the figure Box 11 Averaging adjustment
from box 11 or 12 on your Partnership Statement If your averaging claim changes your profit,
and put it in box 8. If you made a loss, put a put the amount of the change in box 11. If the
minus sign in the shaded box in front of your claim reduces your taxable profit, put a minus
figure. Do not fill in box 9. sign in the shaded box.
If your basis period is not the same as the
partnership’s accounting period, you’ll need to A For information on farmers and market gardeners,
go to www.gov.uk and search for ‘HS224.’
work out the profit or loss for the 2018 to 2019
tax year. Copy the figure from box 11 or 12 on
your Partnership Statement and put it in box 8. Box 12 Foreign tax claimed as a deduction
You’ll also need to put the adjustment in box 9. You can claim for the foreign tax you’ve already
If you are disputing your share of the paid on your income as long as you’re not
partnership’s profit or loss, still copy it to box claiming Foreign Tax Credit Relief. You cannot
8 and make a referral to the Tribunal Service to claim both.
determine the definitive figure to be used.
You must also notify both the nominated partner A For more information on Foreign Tax Credit Relief,
go to www.gov.uk and search for ‘HS263’.
(the partner nominated by the partnership to
submit the partnership return) and HMRC that
Box 13 Overlap relief used this year
you have made this application to the tribunal.
You can claim overlap relief if you have overlap
HMRC suggests that before making a referral to
profits and in the 2018 to 2019 tax year:
the Tribunal Service you try to resolve the issue by
• you stopped being a partner
contacting the nominated partner responsible for
• the partnership was sold or closed down
completing the partnership statement.
• the partnership’s accounting date changed and
your basis period is more than 12 months
Example
James and Sue have been partners for 5 years and prepare Box 14 Overlap profit carried forward
their partnership accounts to 30 September each year. This is any overlap profit you have from earlier
Amir joined the partnership on 1 July 2018. His share years plus any new overlap profits in the 2018 to
of the partnership profit is: 2019 tax year, minus any relief you used this year.
• period to 30 September 2018 £15,000
• year ended 30 September 2019 £60,000 Box 15 Disguised remuneration income
Amir’s basis period for the 2018 to 2019 tax year is If your share of the partnership’s profit or loss
1 July 2018 to 5 April 2019. He works out his profits in box 8 includes an outstanding amount of a
as follows: disguised remuneration loan, there’ll be ‘X’ in
• 1 July 2018 to 30 September 2018 £15,000 box 12A of the Partnership Statement. If so,
• 1 October 2018 to 5 April 2019 put ‘X’ in box 15.
(6/12 x £60,000) £30,000
Amir will put £15,000 in box 8 and £30,000 in box 9. Box 16 Adjusted profit for 2018–19
Use the working sheet on page SPN 4 of these
If you include provisional figures, put an ‘X’ notes to work out your adjusted profit. If you’ve
in box 20 on page TR 8 of your tax return. made a loss, put ‘0’ in box 16 and put the amount
of the loss in box 21.
Page SPN 2
Box 17 Losses brought forward from earlier The time limit for claiming is 31 January 2021.
years set off against this year’s profit Do not complete this box if you use cash basis.
If you made a loss in the 2017 to 2018 tax year or
earlier tax years put the amount in box 17. This A For more information on the limit on Income Tax
reliefs, go to www.gov.uk and search for ‘HS204.’
must not be more than the amount in box 16.

Box 18 Taxable profits after losses Box 23 Loss to be carried back to previous
brought forward year(s) and set off against income (or capital
Use the working sheet on page SPN 4 of these gains)
notes to work out the taxable profit. If you had You can carry losses back to use against:
a profit, put the figure from box K in box 18. • income for the 2017 to 2018 tax year – if your loss
is more than the income you can use the remaining
Box 19 Any other business income not included
loss against the 2017 to 2018 tax year capital gains
in the partnership accounts
– do not make this claim if you use cash basis
This is income paid to you, not the partnership, • income of the 3 previous tax years – start with
such as professional income received in a the earliest year – only make this claim if your
personal capacity. business began after 5 April 2015 – do not make
this claim if you use cash basis
Box 20 Your share of total taxable profits from
• profits of this business in the 3 previous tax years
the partnership’s business for 2018 –19
– start with the latest year – only make this claim if
Use the working sheet on page SPN 4 of these your business ceased in the 2018 to 2019 tax year –
notes to work out your share of the total taxable your claim is for the losses in the final 12 months of
profit. If you had a profit, put the figure from the business (terminal loss relief)
box M in box 20.
You’ll also need to give us details of the amount
Your share of the partnership’s trading claimed for each year in ‘Any other information’
or professional losses on page TR 7 of your tax return.
You may be able to claim tax relief for your share If you use cash basis you can only claim for
of any partnership losses. terminal loss relief.
If you’ve already made a claim for your loss in the The time limit for claiming is 31 January 2021.
2018 to 2019 tax year, include the loss in boxes
22 to 24 and give us the details in ‘Any other A For more information on terminal losses, go to
www.gov.uk and search for ‘HS222’.
information’ on page TR 7 of your tax return.
Box 24 Total loss to carry forward after all
A For information on losses, go to www.gov.uk and
search for ‘HS227’. other set-offs
You can carry your loss forward to set against
Box 21 Adjusted loss for 2018–19 any future profits from the same business. If you
Use the working sheet on page SPN 4 of these had any losses from earlier years that you’ve not
notes to work out if you had an adjusted loss already used up, include them in box 24.
for the 2018 to 2019 tax year. The time limit for claiming is 5 April 2023.

Box 22 Loss from this tax year set off against Class 2 and Class 4 National Insurance
other income for 2018–19 contributions
Only put a loss for this tax year in box 22. Box 25 If your total profits for 2018–19 are less
The amount of tax relief you can claim against than £6,205 and you choose to pay Class 2 NICs
your total income each year is limited to the voluntarily, put ‘X’ in the box
greater of £50,000 or 25% of your adjusted If your taxable profits are £6,205 or more, you
total income. pay Class 2 NICs (£2.95 a week). If your profits
If the loss is more than your income (or your are less than £6,205 or you made a loss, you can
income is nil), put your income amount (or nil) in pay Class 2 NICs voluntarily to protect your State
box 22. You can claim the balance of your loss Pension and certain benefits. You must already
against any capital gains for the 2018 to 2019 be registered as a partner for self-employment and
tax year, or fill in box 23 or 24. Class 2 NICs to do this.

Page SPN 3
If you’re employed and self-employed, you may Working sheet
be able to pay a lower amount of Class 2 NICs
depending on the amount of National Insurance Profit or loss box 8
(show loss as a negative)
A £
you pay from your wages. For more information,
go to www.gov.uk/national-insurance/ Add
how-much-you-pay Positive adjustment box 9
B £
Put an ‘X’ in box 25 if you want to pay Class 2
NICs voluntarily. You cannot change your mind Total
C £
after you pay your bill. Minus
You cannot pay Class 2 NICs voluntarily through Negative
Self Assessment after 31 January 2020. adjustment box 9
£

Foreign tax box 12

£
A For more information, go to www.gov.uk/voluntary-
national-insurance-contributions
Overlap
Relief box 13
£
= D £
Box 26 If you’re exempt from paying
Class 4 NICs E £
Total box C minus box D
You do not have to pay Class 4 NICs if you were:
• at or over State Pension age, or under 16, on
6 April 2018 If box E is positive
• not resident in the UK for tax purposes during Box 10
F £
the 2018 to 2019 tax year Add
Positive adjustment box 11
G £
Only put an ‘X’ in box 26 if you’re exempt.
Or minus
For more information, go to www.gov.uk/ H £
Negative adjustment box 11
national-insurance
Adjusted profit – copy to box 16
Box 27 Adjustment to profits chargeable I £
(add boxes E, F plus box G or
to Class 4 NICs minus box H)
Some adjustments can reduce the amount of Minus
Class 4 National Insurance contributions you Box 17 – up to amount in box I
J £
have to pay. Put in box 27, the amount of any:
• adjustments for changes in accounting practice Total box I minus box J
K £
• losses from earlier years Add
• employment earnings included in your profits Box 19
L £

Total – copy to box 20

A For more information on Class 4 National Insurance M £
contributions adjustments, go to (add boxes K and L)
www.gov.uk and search for ‘HS220’.
If box E is a loss or zero
Copy box E to box 21 as a positive figure.
Your share of the partnership’s tax paid
Don’t include the minus sign in box 21.
and deductions
Boxes 30 and 31
Use your Partnership Statement and copy the:
• box 24 figure to box 30
• box 24A figure to box 31 We have a range of services for
disabled people. These include
More help if you need it guidance in Braille, audio and large
To get copies of any tax return forms or print. Most of our forms are also
helpsheets, go to www.gov.uk/taxreturnforms available in large print. Please contact
You can phone the Self Assessment Helpline on our helplines for more information.
0300 200 3310 for help with your tax return.

These notes are for guidance only and reflect the position at the time of writing. They do not affect the right of appeal.

Page SPN 4