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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I work as a sole trader and account for my tax through self

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I work as a sole trader and account for my tax through self assessment. I’m now starting a second business as a partner so for tax purposes I still need to account for this income on my self assessment and I need to know the right way so I don’t pay tax twice. This is how I think it works.My Sole trader account self assessment with tax liability plus additional income from partnership which will add to my tax liability from second income and reducing the tax liability in the partnership.The partner does the same and the partnership accounts are submitted independently accounting our incomes as wages reducing any profit in the partnership down and then the partnership pays its own tax liability on profits remaining in it ?Or do you do separate accounts and just split the partnership tax liability and record the 50% liability in each self assessment and submit both accounts only paying the tax liability on personal self assessments and zero tax on partnership submission as it’s been accounted for in personal self assessment?Thank you for your timeSo on the

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

My apologies for the delay in responding.

You have income as sole trader and there is also income from partnership.

You would report both on your self assessment tax return and your tax payable would be based on income from all sources including partnership profit.

Also you need to file a partnership tax return showing each partner's share of partnership income and profit.

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