Partnership Question
deborahcarpenter
Registered Posts: 161 Dedicated contributor 🦉
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
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
0
Comments
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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,
Ken0 -
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.0
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Also agree. It will probably go on the Land and Property pages, not self employment.0
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Do they run any other business together as a partnership, ie building operations or similar??0
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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.
Debbie0 -
I would be happy to go with the Land and Property pages of individual TRs in that case.0
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