Self Assesment tax return for potential unregistered partnership

Self Assesment tax return for potential...

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I have recently acquired a new client who moved over because they weren't happy with their prior accountant. 

For the 14/15 tax year they were a partnership and then they moved to a ltd co for the 15/16 tax year.  Partnership accounts have been prepared by the old accountant for the 14/15 tax year but personal tax returns were never completed for the 2 partners. 

Client has no idea what the partnership UTR is (and I suspect it was never registered in the first place!)  

The partnership was new in the 14/15 tax year so there is no prior information.

I am now doing their personal tax returns and am unsure whether I should use the partnership accounts and simply divide the income and expense by two for their return and report it as self employed income or how to go about submitting a partnership return when the clients have no information.

Any advice?

Replies (6)

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By Tim Vane
22nd Jan 2016 14:31

When a tree falls in a forest and nobody is there to hear it, does it make a sound?

It was a partnership. Register it. Get a UTR. File the return. You will need to ask the partners how they are sharing any profits/losses. You cannot decide yourself.

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RLI
By lionofludesch
22nd Jan 2016 14:32

Register

You need to register this as a partnership if you reckon it hasn't already registered.  If you don't, you're fudging the issue and it may come back to bite you.

I assume you've checked that profit sharing ratio.

Go for reasonable excuse if there are any problems with penalties.

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By Anne Robinson
22nd Jan 2016 21:07

Phone
Can you not phone agents line with one of the partners beside you to authorise you to place the call and find out the partnership has been filed, or even registered. They should be able to trace the partnership from the partners personal UTR

However they will only send partnership UTR by post and anyway how do you know what the disallow able expenses and capital allowances are anyway.

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By thomas34
23rd Jan 2016 11:06

Software

I believe my software will only populate the partner's profit share from the partnership return.

I'd advise getting the individual returns done by including what looks like the individual's profit share under another category with a white box note. This way you'll avoid late submission penalties and late payment interest and possible penalties. Once you register the partnership you might strike lucky and find that the return is postdated with a 3 month window to complete.

If the software will allow direct input to the partnership supplement most of the above suggestions are academic.

 

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Replying to Constantly Confused:
RLI
By lionofludesch
23rd Jan 2016 14:40

HMRC software

thomas34 wrote:

I believe my software will only populate the partner's profit share from the partnership return.

As HMRC software doesn't have a partnership return, this won't be a problem.

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By hydrographer2004
26th Jan 2016 11:30

Thanks for your responses - the client is finding out whether the partnership return was registered.  We will go forward from there.

 

Many thanks

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