Partnership Headache!

awwallace22 Registered Posts: 35 Regular contributor ⭐

Ive been scratching my head all day and seem to be going in circles with this one :(

The senario is:
Accounts were made up by two accountants previous to me:They covered the period 19/7/07 to 27/7/08- why these dates Im not sure -however

The partnership tax return for 5/4/08 Used the above accounts and showed box 11 profit £3997 & box 11a adjust on change of basis £1204

The partnership tax return for 5/4/09 used the same accounts (19/7/07 to 27/7/08) and showed box 11 profit £3997 & box 11a £96

I have taken the accounts over and it appears the accounting period has changed to 31/3/10. So the accounts produced cover the period from 28/7/08 to 31/3/10. The adjusted profit for these accounts for tax purposes is £22346. How do I calculate this period on the partnership tax return 5/4/10. Its probably quite simple but my brain aches the more and more I look at it. HELP!


  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
    The first accounting period was 374 days and the tax return to 5 April 2008 would cover 261 days so they should have been taxed on £3997 / 374 x 261 which is £2789. This also becomes the overlap profits on the next return

    On the 2008/09 tax return they should have been taxed on £3997. I'm not sure what the £96 is for but it could be relief of 9 days overlap profit (ie 374 days less 365 days).

    In 2009/10 they will be taxed on £22346 but as the period is 611 days and this is 246 days more than a year you can get full relief for any outstanding overlap profits carried forward.

    Just a thought, but have you checked with HMRC that they're happy for you to change the accounting period again? I think that if you change it more than once in 5 years you have to request it? I could be wrong, hopefully someone else can clarify.

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