Partnership Question

deborahcarpenter

Good Evening All,

I have taken on a new partnership client. The partnership has been running for 6 years and has never been registered with HMRC. The previous accountant just done the partnership accounts and told each partner what their share of the profits/loss was so they in turn could submit their own tax returns. Looking back through the paperwork, they have never made a profit (property rental business). My query is, should i register the partnership with HMRC and submit previous 6 years tax returns? my client wants me to continue as the previous accountant did?
Any advice much appreciated as always.

Deborah

KenS

Hi Deborah

Depends on whether they are running a property rental business or not. Quite normal to have a jointly owned property that is not being carried on as a partnership business and you just allocate profit/loss in the property pages of the SA100......i.e. no SA800 to complete.

Everything you need is right here.....http://www.hmrc.gov.uk/manuals/pimmanual/pim1030.htm

Cheers,

Ken

JodieR

I agree with Ken... I've got a client who owns about 5 properties with someone else - I don't do the property accounts myself but each year I get a copy of the accounts and put half of the income on his rental income pages.

Monsoon

Also agree. It will probably go on the Land and Property pages, not self employment.

T.C.

Do they run any other business together as a partnership, ie building operations or similar??

deborahcarpenter

Hi,

No they are 4 siblings who own 5 residential properties that they rent out. They rent them out through a company called ALR propertys.

Debbie

T.C.

I would be happy to go with the Land and Property pages of individual TRs in that case.