Can a partnership tax return have only one partner on it?

[gpietersz]

Because of a change of partners in 22/23 my LLP now has two partners one of which (me) is entitled to all profits (for 23/24).

The other partner does not have to make a self assessment return for other reasons (all income is PAYE etc.) and does not have a UTR.

Can I file a return with just one partners details on it, or does the other partner need to register for self-assessment and get a UTR?

Also, does my self-assessment return have to be done after the partnership return is filed, or can I do it was soon as I have calculated my share of the profits? The main hurry here is I want to file my return ASAP. Thanks to the basis period change it means I need it to cover 23/24.

 

[Paul Kelly ICHYB]

I am sure a more qualified person will give the best answer, but how can you have a partnership with just one person?

 

[gpietersz]

An LLP can do so, although AFAIK you lose limited liability after a period so its a bad idea.

This is an LLP (I have edited the question to clarify), it does have two partners but one is not entitled to a share of profits for 23/24, which is the year I in question.

Former partner left in 22/23 and was replaced by new one.

 

[Newchodge]

An LLP can do so, although AFAIK you lose limited liability after a period so its a bad idea.

This is an LLP (I have edited the question to clarify), it does have two partners but one is not entitled to a share of profits for 23/24, which is the year I in question.

Former partner left in 22/23 and was replaced by new one.

Did the former partner have a share of the profits?

 

[gpietersz]

Did the former partner have a share of the profits?

Yes. So I did not have this problem in previous years.

 

[DWS]

I believe you still need to include the details of both partners on the partnership tax return whatever the profit share is.

 

[Newchodge]

Yes. So I did not have this problem in previous years.

I mean in the 2023/24 tax year?

 

[UK Contractor Accountant]

include the other Partner on the 2024 PR with a nil profit share.

Leave the UTR section blank and see if the software lets you file it.

I have had the issue before and just put 9999999999 as a dummy UTR to get the Return filed when it kept being rejected when left blank. Also put a note in the white space of the Return to explain.

 

[gpietersz]

include the other Partner on the 2024 PR with a nil profit share.

Leave the UTR section blank and see if the software lets you file it.

I have had the issue before and just put 9999999999 as a dummy UTR to get the Return filed when it kept being rejected when left blank. Also put a note in the white space of the Return to explain.

Thank you, that sounds like a great solution. Good to know HMRC will accept a blank UTR. The software I used last time would not let me do that, but I am happy to use something else if it does.

 

[UK Contractor Accountant]

Just found this on AWeb - lookalike that little workaround was closed!

Only option, imo, is to file a paper return with the utr section left blank.

HMRC work arounds (2009)

Two measures were put in place in January 2009 to allow those without UTR's to make a return online. First the fast track UTR facility promised speedy replies to requests for UTR's, and secondly partnerships were permitted to use a dummy UTR - 99999 99999 for partners without a UTR.

Feedback early in 2009 suggested that the Fast Track process, although appreciated, needed re-designing and more resources devoted to it. HMRC has decided that as there is no special need for returns to be filed by the end of January for these taxpayers, the additional resources are not warranted, so steps 1 & 2 above will suffice.

Use of the dummy UTR has also ceased as the use of this technique prevents HMRC from risk assessing certain tax return data and also interferes with HMRC's obligation to make certain information available to overseas tax jurisdictions.

 

[gpietersz]

Frustrating for me, but thank you. A waste of time but at least it will be a straightforward self assessment.

 

[gpietersz]

Only option, imo, is to file a paper return with the utr section left blank.

Frustrating for me, but thank you for letting me know.

How long do they take to process a paper return?

I read the article you referred to and it suggests leaving it blank for overseas partners. I am wondering whether the safe option might be for the other partner to register for self assessment - at least it will be a simple return to complete.