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Late partnership SA return?

Help! I think I might be having a senior moment.

New partnership commences 1 August 2009 and the first accounting year end is 31 August 2010.

We didn't complete a 2010 partnership return as, a) I thought that as the first year end fell in 2010/11, this was the first return that had to be submitted, (there were no figures that could be entered onto the return), and b) IRIS wouldn't produce one, reporting that there were no figures to disclose for the year. We did, however, put the respective taxable shares, (apportioned 5 April), on the individual SA returns.

HMRC say I'm wrong, and a 2010 return was due, and I'm starting to think they're right. Are they?

All/any help appreciated.

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Basis periods?

2010 --- period from 01.08.09 - 05.04.10  (taken as a % of first year accounts)

2011 -- First 12 months to 31.08.10

Overlap profits carried forward.

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25th Oct 2011 15:21

Steve

Thanks, but it's not basis periods I'm concerned with as I know what these are. It's whether a partnership return is due for 2009/10, even though there's no accounting period ending within that tax year. HMRC say there is, I've always believed that there isn't.

Who's correct?

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By Monsoon
25th Oct 2011 15:33

Steve and HMRC are correct

If your basis periods are correct, then they are as Steve stated and a 2010 return should have been submitted.

If a trade was carried out within the tax year then a tax return for that year is required.

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25th Oct 2011 15:44

agree

with Monsoon

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25th Oct 2011 16:24

Not convinced

I have done the same as the original poster a couple of times and no filing penalties were issued.

If you do a 2010 and 2011 Partnership SAR you are effectively duplicating figures. Both SARS will be exactly the same.

The profits are split on a tax year basis when the personal SARS are completed. There is no facility to do this on the partnership SAR.

As the poster rightly pointed out, Iris would not let you complete a 2010 Tax Return, as the period end does not fall into the 2010 Tax year.

I would definitely confrim the postion with HMRC. Can you let me know the result?!

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26th Oct 2011 09:57

what about a 16 month period

Let's say the partnership started on 1 January 2010 and made accounts up to 30 April 2011.

Using your system above, you wouldn't submit a partnership tax return until 2011-2012.

However, HMRC would be expecting a partnership return for 2009-2010 and 2010-2011.

The only thing you can do now is get back to IRIS, and hopefully they will compensate you for supplying you with faulty software. Be interesting to hear what they have to say.

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