Spreading income between me and wife

chrismac1

That's great. We have a legal precedent with HMRC showing that a partnership existed and hence requiring the Phillips to file a partnership return. Ideal, just what we need here.

Legally,

a" partnership is the relation which subsists between persons carrying on a business in common with a view to profit”

In my view, good luck to anyone who attempts to argue that a husband and wife claiming to operate as partners are nonetheless not meeting this definition!

Dead_keen

You forgot to mention Williamson.

Darksparkle

Even if they could backdate a partnership to 2014/15, would they not now have failure to notify penalties?

chrismac1

As it happens I have just submitted a tax return for a new client for 2012-13 who notified HMRC on 22 November 2015 that he began trading in April 2012. No failure to notify penalties.

Darksparkle

chrismac1 wrote: »

As it happens I have just submitted a tax return for a new client for 2012-13 who notified HMRC on 22 November 2015 that he began trading in April 2012. No failure to notify penalties.

But aren't they tax geared penalties?

Cook_County

chrismac1 wrote: »

As it happens I have just submitted a tax return for a new client for 2012-13 who notified HMRC on 22 November 2015 that he began trading in April 2012. No failure to notify penalties.

These penalties could be up to 100% of tax due; so it will be a long time before you'd know if HMRC are interested.

chrismac1

Good point. But where the taxpayer has taken the initiative I've yet to see any penalties charged over the past 5 years, which must cover about 30 tax years in total where in theory such penalties could have been charged.