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Posted Sun, 17 Jul 2022 15:25:42 GMT by Yee
Hi, the partnership is set up in Hong Kong with 3 partners. 2 of them are now working for this partnership business in the UK. The 3 partners receive income every year from this business (not being paid monthly). Is it correct that the two individuals in UK should register as self employed and file self assessment to pay tax for their income? And if they are going to apply for split year arrangement, should the taxable income be calculated on a pro rata basis - based on the yearly income and the period that they work in the UK ( like yearly payment received in Mar 22 is 1000 pounds but they only worked in the UK (worked in HK before arriving the UK) for the previous financial year for 6 months, then the income submitted for tax payment is 500 pounds?) Thank you very much.
Posted Tue, 19 Jul 2022 10:49:46 GMT by HMRC Admin 17

Yes the UK residents will need to regsiter for self assessment and complete a partnership page within their return.

As the income is paid after their arrival in the UK,they need to declare the full amount.

It is not pro - rata'd   .

Thank you.
Posted Wed, 20 Jul 2022 20:37:55 GMT by Yee
Hello, Thanks for getting back to me. 1)Am I correct that the two partners in the UK should register for a partnership instead of each of them being a sole trader to file self assessment for tax payment? To be more clear on the business background, 2 out of 3 partners (partnership registered in Hong Kong) are now in the UK but the business is based in Hong Kong (income received in Hong Kong bank account and no relationships with any parties in the UK). The registration as self employed (either sole trader or partnership) is just for tax payment purpose. 2)Is the tax burden the same with registration with sole trader or partnership if each of the partners have same share and receive same income every year? or what the difference between sole trader and partnership? Is it not acceptable or incorrect if they register as sole trader for the two partner in the UK? 3) Do partnership file self assessment together for the business income? if they have individual income to declare, does it mean each of them need go file another self assessment just for their own income for the year ? thanks a lot. thanks a lot.
Posted Thu, 21 Jul 2022 16:11:46 GMT by HMRC Admin 20
Hi Yee,
Please refer to guidance at:
Register if you're a partner or partnership
Thank you.

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