I have a sole trader client who is a 10% partner in a partnership. The sole trader is forming a partnership of his own and that partnership is to replace the sole trader partnership such that the 10% profit share is paid into the new partnership instead of to the sole trader as was.
I am sorry that this might be an odd question but I do not know the answer and so wondered what is the method by which HMRC are advised that the UTR number for the sole trader as a partner is being replaced by the UTR of the new partnership. Are there any special forms to complete or is it a case of simply informing HMRC and then ensuring that the partnership tax return records the profit share attributable to the partnership UTR instead of the sole trader UTR?
This will be a 6th April change so no mid year change will be necessary.