I have a client with a 30 April year end who has been trading as a sole trader for a number of years.
On 1 May 2010, he took on a partner and the first partnership accounts were for the year ended 30 April 2011.
As there is at least one partner who is common to the trade on both sides of the change, the business is regarded as continuous, should a partnership tax return have been filed for 2010-11, as there will not be any period of account ending in the tax year 2010-11?
Replies (6)
Please login or register to join the discussion.
Yes - of course
How else would the partners know what profit share to put on their personal tax returns for the 11 months of 2010/11?
Do I gather that the partnership was not registered with HMRC back in 2010?
partnership return
As others have suggested - you should have filed a partnership return for 2010/11.
As there were no accounts ending in the tax year, the partnership return should have been completed on the basis as if there were accounts for the period from commencement to 5 April 2011.
OP
As others have suggested - you should have filed a partnership return for 2010/11.
As there were no accounts ending in the tax year, the partnership return should have been completed on the basis as if there were accounts for the period from commencement to 5 April 2011.
If it makes you feel better OP I would have made the same mistake, I would have correctly shown the personal tax side, but the idea that a p'ship return was needed would have escaped me. You live and learn!