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Ltd company as a partnership

I have had 2 cases this year where I have received penalties for ltd company clients not completing a partnership return.  The ltd company is listed as partnership member but the penalty comes out to the directors.  In both cases neither of the directors or the company has ever been in a partnership, it just seems to be registered incorrectly by HMRC.

Am I just unlucky having 2 of these or is there something going wrong?

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21st May 2012 12:28

Two returns?

Does HMRC think there is separate CT Partnership so they are looking for two returns?  The SA800(TP) form says "see page PTRG 5 if you are a CT partnership" which is a partnership consisting solely of companies - could this be why?

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21st May 2012 12:46

Confused

You say the company is listed as a member of a partnership but that it is not in fact in a partnership.  This would suggest to me that HMRC have made an error when entering a number for that partnership.  All you need do is appeal the penalty on the grounds that you are not in that partnership.

 

As for the penalties for failure to submit a partnership return, the penalty is on each member and therefore should have been issued to the company.

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21st May 2012 19:58

LLP Penalties for late partnership return

Has anybody had LLP clients that have had penalty notices sent to partners? Seems to me that an LLP is like a LTD company in the sense that it is incorporated and therefore the LLP being a financial entity with limited liability should be liable for the penalty and not the partners. All 10 partners, filed their individual tax returns in time. There was an issue with the activation code which arrived too late to file a tax return on line, Activation code was applied for in early January.

 

Thanks in advance

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22nd May 2012 08:04

LLP is a partnership for tax

Normally an LLP is taxed as a partnership and not as a corporate company (except in specific circumstances).  So it is correct that the partners and not the partnership receive the penalty for not filing the return.  However, if it was a problem with the activation code I would simply appeal the penalty.

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