How do I allocate profit and loss between partners in my SA800 return?

As per the HMRC guidance here (on page PTRG 26), “For tax purposes the allocation of profit (or loss) between partners must result in a straight apportionment of the actual profit (or loss) made by the partnership. If the initial allocation using the commercial profit sharing arrangement for all the partners produces a mixture of notional profits and losses, the actual partnership profit (or loss) must be reallocated between the profit-making (or loss-making) partners alone. This reallocation is made in proportion to the notional profit (or loss) initially allocated to those partners.”

The above means that the partnership cannot have a mixture of profit and losses being distributed to partners on the Partnership Statements contained within the return. All partners need to have either a loss or a profit (or no allocation at all). You may also find the information contained within the HMRC guidance here of use.

Once you know the split that needs entering within the Partnership Statement, please browse to the applicable below location (depending on your method of data entry):

HMRC Forms mode:

SA800 > Partner Management > Pages 6,7: Complete the relevant entries on screen for each partner.

Please note that from version 16.0.110, an additional screen for Pre-profit/loss allocation adjustments has been added to allow information relating to salary and other adjustments to be declared. We recommend updating to the latest version to make use of this screen.

SimpleStep mode:

Partnership statement: On each of the screens available under this heading, you will be able to input the relevant details. Note you will be able to input values via manual data entry or a calculated value will be inserted if you use the percentage share column.