Basis periods for unincorporated partners

stefanboro
stefanboro Registered Posts: 187 🎆 🐘 🎆
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.

Comments

  • jamesm96
    jamesm96 Registered Posts: 523
    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
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