Share this content

What and how to show - SA 800 -" Tax Year 2"

Accounting result entries for 2nd tax year - SA 800

Didn't find your answer?

Partnership trading accounts (first period of account) is 461 days ending before the end of Tax Year 2. Not a succession to a trade previously carried on. Now, I know that Partnerships do not have basis periods and do not show overlap profits etc. I am not dealing with the Partners' personal tax returns so my concern is confined solely to the SA800. For the commencement year I will show a pseudo accounting period of commencement date to 5 April which is per HMRC Partnership Guide 2020. Results will be pro rated on day basis. There's a partnership salary so this will also be pro rated. The issue is what to show on the SA800 for Tax Year 2, the first year in which an accounting date ends. HMRC Partnership Return Guide 2021 states: "Return details of the partnership’s trading and
professional income and expenditure for the accounting period, or periods, ended on a date in the period 6 April 2020 to 5 April 2021."

This means one shows again, figures that have in part already appeared on the Year 1 SA 800 including the Partners Salaries. Does the HMRC "computer" now check the profit shares against the SA104 filed by each partner? If so, there won't be a match because they (the partners) should file results for the 12 months ended on the accounting date. (And in fact, by so doing, they are taxed only once on the entire profit of that accounting period).

Like I say, I know basis periods for a Partnership are not relevant but (apart from using white space) how does one eliminate the contradiction. Is there a contradiction? Should I give more credit to HMRC? Do we care?


Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.

Share this content