top of page
  • Writer's picturePTA

What is HMRC Form SA402?

HMRC Form SA402 is a document used in the United Kingdom for tax purposes. Specifically, it is used to register a partner for Self-Assessment when that partner is not an individual, such as a company or trust​. The person responsible for the partner, like the trustee or company secretary, should sign the form. The form can either be used online or filled in on-screen, printed and posted to HMRC. If users encounter problems with the online forms, a PDF version is available to print and fill in by hand​​.

What is HMRC Form SA402

The Digital Shift in 2023

Significant changes to the form have been introduced in 2023 as HMRC shifts towards a 'digital by default' approach. The HMRC is contacting taxpayers who previously filed paper Self-Assessment tax returns to inform them that they will need to call HMRC if they require a paper form. The SA forms, including SA402, are no longer available to download from the website​.

However, it's important to note that not all paper filers will be contacted. Those aged 70 or over who have not previously submitted digitally, along with visually impaired filers, will continue to receive a paper SA return automatically​.

Deadlines and Digital Filing

With this shift, the deadlines for filing have also changed. Self-Assessment returns submitted online have a filing deadline of 31 January following the tax year end, while paper returns normally need to be filed by 31 October following the tax year-end. From 6 April 2023, the paper form for the SA return will no longer be available to download from HMRC's website​.

Broader Changes and Impact

The changes to form SA402 and the broader shift to digital filing are part of a wider campaign to move more taxpayers' interactions with HMRC to digital channels. The HMRC has already trialed using SMS replies for direct queries from its phone helpline during the run-up to the Self-Assessment deadline in January. In addition, HMRC will be reducing its use of high-volume letters and forms, with more of these being delivered digitally over the next two years​.

How to Fill HMRC Form SA402 in the UK

Filling out the HMRC Form SA402 might seem daunting, but with the right guidance, you can complete it with confidence. The form is used to register a partner who is not an individual for Self-Assessment in the UK.

Preparing to Fill Out the Form

Before you begin filling out the form, gather all the necessary information you'll need, as the online version of the form does not allow you to save a partly completed form​1​. You can fill out the form using the online service or by hand if you print the PDF version​1​. If you're using an older browser, ensure you update it or use a different browser. The form should open in Adobe Reader​.

Who Should Fill Form SA402?

The form should be filled and submitted by the person responsible for the partner, such as the trustee or company secretary. This person might be a partner in the other partnership. Remember to include the registration number on the form if the new partner is a limited liability partnership or limited company​.

Filling the Form

Form SA402 registers non-individual partners in a partnership. This could be another partnership or a company. Individual partners register with form SA401​.

Yes, a limited company can be a partner in a partnership, and it will need to include any income earned from the partnership when calculating its profits for the Company Tax Return​.

Tax Returns and Partnerships

In a partnership, each human partner is responsible for their own Self-Assessment tax return, and paying their income tax and National Insurance contributions. Each partner that is another entity (like a limited company or another partnership) must submit its own tax return which includes its share of any profits from the partnership.

The partnership itself must also submit a tax return, and the nominated partner is responsible for this. The main partnership tax return must detail the share of profits or losses for each partner, using the partnership statement. Each partner should receive a copy of this statement to complete their own tax return​.

What Happens If the Partnership Ends?

If a partner leaves a partnership, they still need to submit a tax return for that year, up until the date they left. If the partnership ends, the tax return is completed for the period of trading up until the date the partnership ended​.

Keeping Records in Business Partnerships

You must keep partnership records for five years following the 31st January deadline of the partnership tax return. This applies whether you complete a paper tax return or an online one. The records you need to keep depend on the type of gains and income the partnership receives. Failure to maintain the correct business records could result in a penalty or fine​.

In conclusion, filling out the HMRC Form SA402 involves several steps, from preparation to submission. With careful attention to detail and thorough record-keeping, you can successfully register a non-individual partner for Self-Assessment.

In conclusion, HMRC Form SA402 is an essential tool for registering non-individual partners for Self-Assessment in the UK. While the form's purpose remains the same in 2023, the shift towards digital filing and the changes to form availability and submission deadlines reflect HMRC's broader move towards 'digital by default services. It's essential for taxpayers to be aware of these changes to ensure their tax obligations are met accurately and on time.

How a Tax Accountant Can Help You with Form SA402

How a Tax Accountant Can Help You with Form SA402?

Navigating tax forms such as SA402 can be complex, especially for those unfamiliar with UK tax regulations. Engaging a tax accountant's services can greatly simplify this process. Let's explore how they can assist.

Understanding the Complexity of Form SA402

A tax accountant's expertise is particularly valuable when dealing with forms like SA402, used to register a non-individual partner for Self-Assessment. Accountants can help you understand the nuances of this form, which is different from the SA401 used to register individual partners. They can explain the purpose of each section, ensuring accurate completion and submission.

Assisting in Accurate Completion

The completion of Form SA402 demands detailed information about the non-individual entity to be registered, such as a limited company or another partnership. A tax accountant can help gather the necessary data, ensuring the form is filled out correctly. Mistakes in these forms can lead to complications or delays, which a tax accountant can help you avoid.

Navigating Partnerships and Limited Companies

Form SA402 requires a nuanced understanding of partnerships and limited companies, particularly when these entities are partners in a partnership. A tax accountant can navigate these complexities, clarifying the obligations of each partner in terms of their own Self-Assessment tax returns and any profits derived from the partnership.

Expert Advice on Tax Returns and Partnerships

Tax accountants understand the obligations of each partner in a partnership. They can provide guidance on how each partner - whether an individual or another entity - needs to report their share of any profits from the partnership in their own tax returns. They can also assist with the partnership's own tax return, which the nominated partner is responsible for.

Guidance in Case of Partnership Changes

Changes in a partnership, such as the departure of a partner or the dissolution of the partnership, can complicate tax matters. A tax accountant can guide you through these scenarios, ensuring that all partners fulfill their tax obligations for the period of their involvement in the partnership.

Ensuring Proper Record Keeping

Good record keeping is crucial for partnerships, with records needing to be kept for five years following the 31st January deadline of the partnership tax return. A tax accountant can advise on the types of records that need to be maintained, helping to prevent penalties or fines resulting from inadequate record keeping.

Liaising with HMRC

Finally, a tax accountant can serve as an intermediary between you and HMRC. They can submit the completed Form SA402 on your behalf, saving you time and effort. In case of queries or issues from HMRC, your tax accountant can provide the necessary support and guidance.

In conclusion, hiring a tax accountant can greatly simplify the process of dealing with Form SA402. Their expertise and guidance can ensure that the form is completed accurately, that all partners fulfill their tax obligations, and that proper records are maintained. This professional help can give you peace of mind in navigating the complexities of UK tax regulations.

bottom of page