Basis periods for unincorporated partners

stefanboro

Not my strong point here....

Basis periods rules for ordinary self-employed individuals who have an accounting period that differs to the tax year state that the taxable profits are eventually (from year 2 or year 3) based on the period in which the accounts are made up - not strictly the tax year itself. Fine.

Is the same applicable to members of a unincorporated partnership?

I can't see why not - and then I imagine that when a new partner joins the basis period rules would then be applicable to that partner individually - i.e. year 1 is the 5th April, Year 2 is first 12 months of trading / 12 months to accouting date / the next 5th April and Year 3 is standard accounting period ending in that year.

Many thanks.

jamesm96

stefanboro wrote: »

Not my strong point here....

Basis periods rules for ordinary self-employed individuals who have an accounting period that differs to the tax year state that the taxable profits are eventually (from year 2 or year 3) based on the period in which the accounts are made up - not strictly the tax year itself. Fine.

Is the same applicable to members of a unincorporated partnership?

I can't see why not - and then I imagine that when a new partner joins the basis period rules would then be applicable to that partner individually - i.e. year 1 is the 5th April, Year 2 is first 12 months of trading / 12 months to accouting date / the next 5th April and Year 3 is standard accounting period ending in that year.

Many thanks.

Yup... partnership income is assessed on exactly the same basis: http://www.hmrc.gov.uk/manuals/bimmanual/BIM72205.htm