S A Partnership late filing penalty

S A Partnership late filing penalty

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We have recently taken on a client who it turns out had run a pub through a partnership in 2012, the reason this has come to light is that our client has had a late filing penalty of £1600 drop on his mat, turns out the previous accountant hadnt filed the return and it appears still hasn't, looking at the paperwork it also appears that the previous accountant had filed individual returns and put the loss 50 /50 to the partners, unfortunately one had taxable income from elswhere the other did not. My questions are, can I adjust the returns to put 99% loss to one partner and on what grounds can I appeal the penalty. Thanks

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By Tim Vane
26th Jul 2016 15:54

If the penalty is for non-submission, and you admit that the return was not submitted, what makes you think you have grounds for appeal?

Unless they have a fixed sharing agreement, the partners can share profits in any way they see fit, but HMRC may take issue if they try to do it retrospectively.

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By CW2012
26th Jul 2016 16:05

Thanks Tim, I don't think that I have any grounds for appeal, I was thinking of the unconscionable route due to the amount of the penalty levied against the clients fairly paltry income, I wondered if anyone could come up with something better. I agree about the reproportioning of the partnership loss at this late stage, I'd settle for reducing the penalty. Any thoughts.

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Replying to CW2012:
RLI
By lionofludesch
26th Jul 2016 16:09

You've more chance of recovery by suing the accountant.

Partnerships, eh ? No wonder we hardly see them any more.

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