Tax return for partnership

[whichwdc]

Hi,

I need to submit a tax return for a partnership which has barely made any money in the last tax dates (08 -> 09) ie <£200 ... I can't find anywhere what the tax threshold is. Does anyone know this information. Do I have any tax to pay on that?

Also, I've only just realised that I need to purchase commercial software to submit my tax return online for the partnership. But I'm guessing if I have no tax to pay they can't charge me a penalty for a late tax return form?

Sorry this is all probably very basic, but never done it before.

Thanks

 

[Jenni384]

Hi

Unfortunately the penalty for partnership returns is not tax geared. All partners will get a £100 penalty if filed late and, yes, you'll have to get 3rd party software to do it in January. This may well be the best priced one:
http://www.ftax.co.uk/component/ftaxcart/?task=Detail&productID=FTAX-P0109

The partners pay tax based on their personal situation and split of the profit. Eg, £200 profit split 50/50 = £100 taxable income for each partner. If that's their only income in the year, no tax to pay. If they have a 20k job as well as the partnership, there will be tax to pay.

A personal tax return will have to be submitted too. If you have been issued with a return you will have to submit it.

Alternatively you may be able to find an accountant who will do it for you for a reasonable fee.

If you want to PM me to see how I can help, please feel free.

 

[David Griffiths]

Partneships don't pay tax. The income declared is split between the partners, and the partners pay the tax as part of their personal self assessments.

There is a penalty for a late partnership tax return even if there is no tax payable. It's £100 per partner.

 

[whichwdc]

So the profit of the partnership is not taxed - but any money split between the partners is taxed ?

I know all the partners have done their self assessment individually - it's just the partnership. I realise the date for the paper return has already passed. I was planning on doing it online but didn't realise I needed to use the commercial software. I guess there's no other way around it.

 

[Jenni384]

So the profit of the partnership is not taxed - but any money split between the partners is taxed ?

Yes. But this is a split of the profit which won't necessarily be the same as what's been taken out in drawings.

I know all the partners have done their self assessment individually - it's just the partnership.

So you have the right figures for the partnership return, it's just not been submitted? The partners should have filled out the partnership pages of their personal self assessment return, taking the figures from what is entered on the partnership tax return.

I was planning on doing it online but didn't realise I needed to use the commercial software. I guess there's no other way around it.

Sadly not - sorry.

 

[jameslp]

This may well be the best priced one:
http://www.ftax.co.uk/component/ftaxcart/?task=Detail&productID=FTAX-P0109

I haven't used either software so I can't comment on one which is better, but here is another HMRC approved package for cheaper still: http://www.andica.com/

 

[think77]

Don't you just submit your tax returns in a browser via the internet? Help. I may be confused with what I haven't understood here and I have to submit a partnership return.

 

[David Griffiths]

Don't you just submit your tax returns in a browser via the internet? Help. I may be confused with what I haven't understood here and I have to submit a partnership return.

I don't think that facility exists for partnership returns.

 

[Jenni384]

I don't think that facility exists for partnership returns.

Exactly.
HMRC don't offer a free online partnership return product. If you want to file a partnership return online, you have to use 3rd party software.

 

[LynWills]

I have used Andica partnership software for the last 3 years and would strongly recommend it. Very good value for money

 

[LynWills]

Hi there.

Would really appreciate some help with this.

I have to submit a final return for a parternship which was dissolved 31/12/09.

Between 06/04/09 and 31/12/09 the partnership had no income at all but there were some overheads, eg bank charges , telephone etc. while they were attempting to find more business. The debts of the business were finally shared and paid privately by the two partners.

Obviously the partnership showed a loss in the accounts (as it only had overheads) but my question is this :- Can you actually submit a return for a business that had no income and do you have to?

I know that I need to submit individual returns for the partners as they had other sources of income for the Y/E 05/04/10 but it is the dissolved partnership with no income that I am not sure about.

Would really appreciate any advice.

Many Thanks
Lyn

 

[Zeno]

Hi there.

Would really appreciate some help with this.

I have to submit a final return for a parternship which was dissolved 31/12/09.

Between 06/04/09 and 31/12/09 the partnership had no income at all but there were some overheads, eg bank charges , telephone etc. while they were attempting to find more business. The debts of the business were finally shared and paid privately by the two partners.

Obviously the partnership showed a loss in the accounts (as it only had overheads) but my question is this :- Can you actually submit a return for a business that had no income and do you have to?

I know that I need to submit individual returns for the partners as they had other sources of income for the Y/E 05/04/10 but it is the dissolved partnership with no income that I am not sure about.

Would really appreciate any advice.

Many Thanks
Lyn

Can the tax software you recommended in your first post not cope with this then?

Yes, you have to prepare & submit the partnership tax return for the period to cessation, the losses from which are shared among the partners in the usual manner.

 

[LynWills]

Can the tax software you recommended in your first post not cope with this then?

Yes, you have to prepare & submit the partnership tax return for the period to cessation, the losses from which are shared among the partners in the usual manner.

Thanks for your reply Zeno.

I guess the software will just submit whatever figures I enter. I was just curious as to whether or not you can actually have a business (and therefore a tax return) with no income at all.

Thanks again
Lyn