Self Assessment and SA401 form for non-residents

Hi. I formed an LLP on March 2023 for UK non-residents (both partners are non-residents of the UK) and then receive a letter from HRMC where was the next text: "If you believe that there is no need for you to file a Partnership Tax Return, you need to tell us:" And there were listed conditions about the intention to have a realty in the UK, office, employees, income arising in the UK and so on. We responded to HRMC we didn't have such intentions. So, should the partners non-resident living abroad in the UK complete Self Assessment form SA401? In another branch I found it should be the form SA400. And will there be penalties if the company is founded in March 2022 and I fill out this form now?

Hi,

SA400 is for a business partnership, that is not trading as a limited company.  Limited Liability Partnerships complete CT returns.

If the partnership generates income from property or land, this is taxable in the UK and a return would be required. If the LLP generated any income from UK property or land, then they would need to report it within the CT return.

Thank you.

Thank you for your reply. May I get some clarification, please? Some accountants and auditors say that the partnership members non-residents of UK should report with their income and indicate zero amounts to pay taxes. If so, should they be registered for self-assessment and what form is used in this case? Thanks in advance!

Hi Alex Largman,

That is correct.  
The non resident partners of the partnership need to register for self assessment, so that they receive a UTR.
They submit a tax return declaring their share of the profits or loss, despite the fact their profit is not taxable in the UK.  
SA401 is used to register a partner for self assessment.

Thank you.

Hello. Thank you for your answer. And one more question, please. Is there any deadline when the partner should be registered for self-assessment and submit a tax return? Thanks in advance!

Hi, 
 

If a partner should be registered they should do this by 5th October following the end of the tax year. Thank you.

Hello. I also followed the link https://www.gov.uk/hmrc-internal-manuals/partnership-manual/pm287000 and I have read there the next: PM287000 - UK registered partnership with no UK source income or gain In certain circumstances, HMRC may agree that a partnership return is not required. So, if it is related to our partnership, should the partners send the SA401 form for self-assessment registration and send reports with the form SA100 in the Future? Thanks.

Hi
Yes you will still need to register and you will then be issued with a letter to confirm if all the criteria at PM287000 is met.
If so, you will be advised that you have no filing requirement.