Backdating Partnership Registration

Backdating Partnership Registration

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Is it possible to backdate a Partnership Registration? My client is a sole trader who married last summer. She is doing her accounts for 14/15 and has made more than she anticipated and gone into the higher tax bracket. Her new husband only earns around £15,000pa.

She has asked if she can convert her business to a Partnership and so split the profit and whether there is any ability to backdate this? I have indicated almost certainly not, but just wonder if I am missing anything?

Also if the Partnership is set up as 50/50 initially is it possible to vary that split of profit from year to year if they wanted to and how would they do that? Is there a notification process to HMRC?

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By johngroganjga
13th Aug 2015 17:04

No you are not missing anything. Yes they can vary the profit sharing at will, from one year to the next. They would do it by reflecting it in the partnership accounts. HMRC will see the sharing arrangement each year on the partnership return, if they bother to look. They don't have to be notified otherwise. It's not really any of their business.

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