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Partnership Tax Return problem

Partnership Tax return - HMRC registration query

Hello everyone, Im a newbie here so go easy on me lol!!

Ok so I have been qualified a few years and work in practice mainly doing small limited clients. Ive recently branched out doing some freelance work.

I have been approached by a "partnership" to do their tax and accounts for them, however, they have only ever filed individual tax returns to HMRC, which they prepared themselves without any professional help! They have been trading 2 or 3 years.

I dont think they have ever registered as a formal partnership - what is the correct proceedure here? - Do I inform HMRC and file backdated returns? Will I potentially open a can of worms for the client?

Reason I ask - I will be blunt - in my career Ive probably only dealt with one or two partnerships (they seem to be rare ?) and the rest was only covered in theory in my studies. And even then, I never did the tax returns - the partner in charge did them!

I just want to make sure I dont mess up this early in my career!! 

Any advice appreciated thanks

Richie

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03rd Dec 2018 10:24

My advice would be not to take on work that you are not qualified or experienced to do. I hope your PI is up to date.

Thanks (2)
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By marky74
to Tim Vane
03rd Dec 2018 11:24

Tim Vane wrote:

My advice would be not to take on work that you are not qualified or experienced to do. I hope your PI is up to date.

My advice to you Tim (looking through your ansers to other forum questions) is stop being so obnoxious in your responses to questions. Give this guy a break - he's already explained that he's new and wants some general advice.

Richie - I would say speak with HMRC but its probably the safer option especially since theyve only traded two years to register and file a late partnership return and amend the two SA returns. - Oh and ignore condescending people on here - there are a few unfortunately.

Thanks (1)
to marky74
03rd Dec 2018 12:03

I very much suspect that the clients believe they are paying for advice from somebody who has the experience and training to deal with his affairs in a competent and timely manner. I am perfectly entitled to hold the opinion that somebody charging for their services should have the requisite skills to perform that service. I am also perfectly entitled to express that opinion, just as you are perfectly within your rights to ignore good advice and call it condescending.

Frankly, your own input is daft. Nobody professional should rely on HMRC advice on dealing with a client's tax affairs. The purpose of the accountant is to represent the client's best interest, and that is rarely served by following what HMRC advise.

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By marky74
to Tim Vane
03rd Dec 2018 12:18

If all you want is an argument Tim then I suggest you pop over to Facebook.
Not everyone on here works for the big 4. Some of us are at the far end of the scale and sometimes asking what to you may seem like "daft input" can be enough to give us a bit of extra confidence when dealing with issues we have never come accross. End of.

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03rd Dec 2018 11:58

Are there partnership bank accounts set up, do the clients think they are dealing with a partnership? Any employees? Who do they think they work for?
Or are they just two sole traders that work together a lot?
You might be able to get away with leaving the history, in reality there wouldn't be any tax lost if they are reporting on their own returns, so I doubt HMRC would be too cross if the partnership registration happens more recently.

Thanks (1)
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to accountantccole
03rd Dec 2018 12:24

Thanks for the advice - I am due to have a proper face to face meeting with them soon so I will decide on the best way forward. BTW - I think Ive caused a tiff with the posters above - although Marky is fighting my corner!!

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to Richie-W
03rd Dec 2018 12:43

They both have a point. Unfortunately there are so many seemingly underqualified or more often under experienced posters, that I know where Tim's frustration comes from. At the same time we all had to start somewhere and a bit more community support wouldn't go amiss. Just wish the page filtered who could post in the first place better

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