Claiming my own expenses in an LLP

Claiming my own expenses in an LLP

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I am a member of an LLP and the partnership itself will not let me claim the business expenses I previously claimed in the same trade but as a sole trader .  I .

I am completing my self assessment for the first time as a member and I complete the partnership (short) section but how do I claim my legitimate expenses?  Do I have to persuade the partnership that it must include my expenses in with the rest?

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By ACDWebb
11th Oct 2012 16:43

You cannot claim them through your personal return

against partnership profits.

The best you can do is to prepare a claim to be included as a deduction in the partnership return, that sum being allocated to you as a negative prior share of profit in allocating the taxable partnership profits and reducing your share of profit overall.

 

What expenses are we talking of?

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By Maslins
12th Oct 2012 09:28

Presumably if the other partners won't let you claim these extra costs through the partnership itself, they think the expenses in question are tenuous at best.

If you can't convince your business partners that the costs were wholly and exclusively for the benefit of the trade, I struggle to see how you'll convince HMRC.

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By MJShone
12th Oct 2012 09:55

Why?

Why won't the other partners agree to a deduction in the LLP's return? It would affect only you. The partnership doesn't need to reimburse it. (Indeed, if they did, assuming it was tax deductible, it would be dealt with in a different way.) As an example of a situation where reimbursement does not equal tax claim: It's not uncommon for partnerships to allow partners to claim mileage at the same rate as everyone else. Unless the partnership is below the limit that allows that for the self employed, that reimbursement has to be added back and each partner's profits on the LLP return reduced by a claim for capital allowances and motor running expenses.  In that case, the reimbursement could be totally different from the actual claim for tax purposes. The claim for tax purposes could still be made even if the partners weren't reimbursed by the firm.  

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