HMRC submission errors affecting partnership returns have been extremely popular so far this filing season.  I've put together a little guide to walk you through the correct way to set up a SA800, and to avoid these submission errors.

If you still have difficulties submitting after following the steps below, please send us a query, with the exact text of the HMRC submission errors.  e.g.

Getting Started

The first step we need to take is to check that there are the correct number of partnership pages on the return.  Start by hitting the Client button on the top toolbar.

Then, navigate to the supplementary pages tab, as shown below:

If using the partnership (Short) pages, you will need to adjust the number of pages as follows:

# of partners	# of pages
2-3	1
4-5	2
6-7	3

 

If using the partnership (Full) pages, you will need to adjust the number of pages as follows:

# of partners	# of pages
2	1
3-4	2
5-6	3

 

Once you have confirmed that you have the correct number of pages, you will also need to decide whether to add the Partnership Savings and Investment pages.  

Tick to include the supplement, then, click Finish.  The pages will then appear on the left hand toolbar.

 

 

Setting up the Partners & the Profit Share %

At this point, it is worth checking if you have set up the SA100 returns for the individual partners.  Ideally, you will have them already set up, with the appropriate Partnership supplementary pages (either Short or Full).  If you don’t, you should do this now. 

Done?  Ok, head back into the SA800, and press the Client button on the top toolbar again.  This time, we are going to the Partners tab.

You should be able to see the individual partners in the 2009 Partners list, as shown above.  We now need to add the partners to the Partnership return.  Select the first partner, and press Add.  This will move them from the 2009 Partners list, to the Selected Partners list on the left hand side.

Then, click the Edit button.  This will highlight the Profit Allocation box.  Enter the percentage of the profit split, as shown below.

Once you have entered the profit share % for that partner, press the Save button.  You should then repeat the steps to add the remaining partners, and set up their profit share %.  Once we have all the partners added to the return, press Next, then Finish.  Press Yes on the following message.

 

Filling in the Savings Pages

Select the Savings & Investment pages from the left-hand toolbar.  In most cases, you’ll be looking to complete boxes 7.7, 7.8 and 7.9, which can be found on Page 1, on the 3^rd tab, as shown below:

 

Once you are happy with the Savings & Investment figures shown here, click Save on the top toolbar, or close the screen, and select Yes to save the details, then we can make sure that the numbers add up.  If you have any entries on Page 8, boxes 7.7a, 7.8a or 7.9a, please make those boxes (7.7a, 7.8a, 7.9a) are blank before continuing.  Those boxes are only completed if filing by paper.

 

Checking the numbers add up

The main cause of HMRC submission errors for partnership returns is the figures for the individual partners not adding up to the claimed total figures for the partnership as a whole.  The usual suspects are box 11 (profits), box 22 (interest) and box 25 (tax taken off).  When I'm checking a return, I do the following:

• Make a note of the entries on page 6, boxes 11-29 - the middle tab (these are the figures for the partnership as a whole).
• Make a note of the entries on page 6, boxes 11-29 - the furthest right tab (these are the figures for partner 1 on a Partnership Short)
• Make a notes of the entries on each copy of page 7, boxes 11-29 (these are the figures for partner 1-2 for a Partnership Full, partners 2-3 for Partnership Short)

The above entries should be consistent, to the penny.  If there is a difference (often due to rounding an odd amount between the partners), you have two options:

1. Round the Partnership total to divide evenly between the partners, rounding in favour of the taxpayer.
2. Override the profit allocations for the partners, to ensure that one partner receives the benefit of the rounding.

To override profit allocations:  

1. Open the Partnership return 
2. Click the Client button 
3. Click the Partners tab 
4. In turn, repeat the following process for each of the partners you wish to make adjustments for: 
   • Highlight the partner in the left hand column 
   • Click Edit
   • Tick the Override profit allocation box 
   • Click Save 
5. Click Next 
6. Click Finish 
7. Click No when prompted to refresh the partners' details 
8. Make changes to the individual partners' amounts on pages 6 and 7

 

Providing the figures are consistent, the return should file successfully to HMRC.