Change from partnership to sole trader

[wayzgoose]

I'll contact my accountant when she's back of holiday but was after some initial guidance.
Our business is currently a partnership, myself and my wife which I am going to change to myself as sole trader.
Now according to the Gov website:
You do not need to tell HMRC a partner is joining or leaving unless the partnership is VAT-registered. Partners still have to send a Self Assessment tax return for the year they leave.
That's fine as the accountant can tick the right boxes on the tax return at our year end next January. But I've also read the the remaining partner has to re-register as a sole proprietor.
I want this to happen at the end of July but how can I re-register if HMRC won't know that the partnership has dissolved unil the end of the year?

 

[Newchodge]

I am unaware of any method by which a sole trader can register a business. Have you asked the accountant?

 

[wayzgoose]

I am unaware of any method by which a sole trader can register a business. Have you asked the accountant?

Pardon? Not sure what you mean!

 

[Newchodge]

Pardon? Not sure what you mean!

You said

But I've also read the the remaining partner has to re-register as a sole proprietor.

I have no idea how you would register as a sole proprietor, as far as I am aware you will just need to complete your self assessment.

 

[StevensOnln1]

You're already registered as self employed, so wouldn't it just be a separate set of self employment pages on your tax return?

 

[numbersrule]

You have not been clear as to whether or not you are VAT Registered. This post assumes that you are.

It depends on whether you wish to keep the same VAT number.

11. VAT - Community Forum - GOV.UK

But in any event my understanding is that you must tell HMRC VAT within 30 days about a change such as a Partner leaving. There may be a penalty if you don't.

Please do check this with your Accountant.

 

[wayzgoose]

We are not VAT registered

 

[numbersrule]

We are not VAT registered

Oh, sorry, I see now I misunderstood.

When your partnership is 'dissolved' in terms of HMRC Self Assessment, you may need to Re-register for Self Assessment as a Sole Trader. My understanding is that what you are proposing is a 'technical dissolution' as opposed to a 'general dissolution'. This depends on the exact circumstances so please do consult your Accountant.

Regarding your query about the timing, as far as I am aware, a Partnership continues for tax purpises provided at least one 'Partner' is involved on both sides of the change. So you may not need to re-register as a Sole Trader until after the submission of your Final 'Partnership' Return.

This means there may be a few months when you would operate as a Sole Trader even though you are still registered as part of a partnership.