Share this content

Partner claim an expense paid for personally

Can an individual partner claim an expense on his tax return not paid for by the partnership

Didn't find your answer?

Hi.  An individual partner of a partnership business bought a van recently of which he paid for himself, not through the partnership.  The van is used for the partnership work of joinery but is in the individual's name.  Is is possible to claim the van expense through the partner's individual tax return only?  Or should he be advised that to receive the tax releif the van purchase should go through the partnership and he is the creditor?

Replies (4)

Please login or register to join the discussion.

By Wanderer
09th Oct 2019 11:22

Has to be on the partnership return.

Thanks (0)
By penelope pitstop
09th Oct 2019 13:07

Used to deal with a partnership of doctors. Along with their tax return information, each doctor would annually submit a short list of professional expenses incurred OUTSIDE of the partnership but for the partnership business, like:

Business (medical seminar/golf) trips to Spain (yes they were accredited as genuine CPD)
Extra capital allowances for other cars used for business
Extra business mileage allowances claimed
Anything else genuinely remotely business related but NOT paid for out of the partnership

Those extra business expenses would be allowed by adjustment of the partnership accounts for tax purposes. So these extra allowances would always be allowed for on the partnership tax return.

Thanks (3)
By lionofludesch
09th Oct 2019 15:57

Agree with Penny.

The partners can claim personal expenses but they have to go through the partnership return.

The final profit should be the same figure on the partnership return as on the individual return.

To be clear, you can allocate the costs of the van to one partner. You don't have to split them in the PSR just because they're on the partnership return.

Thanks (4)
By Tom 7000
14th Oct 2019 11:16

What the others said

Thanks (1)
Share this content