Partnership account period for SA Return

In 2015-16 a client included Partnership profits for the year ending 30 June 2016.

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Hi,

In the 2015-16 SA100 Return and the Partnership SA800 2015-16 my client included partnership accounts profit for the year to 30 June 2016.  Is it possible to set the partnership profit share to Nil for both 2016-17 SA Returns - SA100 and SA800?

This is because the profit share in the 2016-17 SA Return should be the partnership accounts for the year ending 30 June 2016.  Then the SA Return going forward will include the correct partnership account profit share without any duplication.

If not this, do I have to include 10/12 months for the 30 June 2017 accounts; then 12 months to 30 June 2017 in the 2017-18 SA Return and adjust for overlap relief?

Thank you.

Replies (6)

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By possep
23rd May 2017 14:16

It might have been a good idea to put some more information in the question such as the commencement date. You clearly are not involved with tax return preparation. You can't enter a nil profit in the 2017 Returns regardless of the commencement date and how on earth did you come up with the ratio of 10/12. Perhaps you should seek some help as you appear to be struggling with the basics of SA.

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paddle steamer
By DJKL
23rd May 2017 14:17

Was this a commencement in 2015/2016?

What you would be doing, if I understand correctly, would be to under assess over the two years

I think I would be correcting 2015/2016 re partnership return and individual returns , deal with overlap if appropriate (commencement) and do correct 2016/2017 returns rather than compounding the error.

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Replying to DJKL:
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By totallytopcat
23rd May 2017 14:45

Thank you for this. Its not a commencement and my thinking on doing this is I could be going back many years to 'correct' for past returns!

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Replying to totallytopcat:
paddle steamer
By DJKL
23rd May 2017 15:07

Well, if all data is to hand I think I would tell clients (in writing) there is a problem and advise them of initial cost determining differences and possible budget (tricky as how long is a piece of string) to correct with HMRC, then subject to them confirming willingness to sort the issue ;

1. Put onto a spreadsheet both what they disclosed and what they ought to have disclosed to see if they gained a financial advantage by their errors.

2. Open dialogue with HMRC re how to resolve

If clients at outset unwilling consider whether you have a MLR issue, if clients once initial work unwilling consider whether you have not mere suspicion but knowledge they have obtained a financial advantage.

What I would not do is knowingly ignore by merely completing 2016/2017 with the correct 30.6.16 figures, that would to me leave you open both re later challenge by HMRC and by the clients if you have not made them aware of the issue.

No the easiest ,presumably new, clients.

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Replying to DJKL:
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By totallytopcat
23rd May 2017 15:20

Perfect. This is very helpful. Thank you and yes as you say - new clients!

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RLI
By lionofludesch
23rd May 2017 16:07

The client included the wrong profits?

Or his agent did ?

How long have they been trading? A couple of years? (not so bad) Or donkeys' years?(big problem).

Is your new client PirateO?*

*Just wondering, like.......

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