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Partnership Question

deborahcarpenterdeborahcarpenter Well-KnownRegistered Posts: 161
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

Comments

  • KenSKenS New Member Registered Posts: 13
    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
  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    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.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Also agree. It will probably go on the Land and Property pages, not self employment.
  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Do they run any other business together as a partnership, ie building operations or similar??
  • deborahcarpenterdeborahcarpenter Well-Known Registered Posts: 161
    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.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    I would be happy to go with the Land and Property pages of individual TRs in that case.
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