Self Assessment help

del86

I don't have software but I am willing to purchase it.

What software do you use?The HMRC site does give you a link to various software for completing return for a partnership.

Would you think that I would in fact only need 2 accounts and 3 UTRS?

I won't be able to end the partnership before this deadline though will I?

[Deleted User]

Oh my goodness! Your friend has put you in a bit of bother!

You cannot submit a partnership return online without specialist software - an accountant would have this.
Even if you could all of the figures would be zero as you have no appropriate income. Half of the property income should be declared on each return - There is no trading partnership.
Information from the partnership return is transferred to your personal returns - HMRC will check that this is done.
I would recommend that you see a tax advisor now - they will cost you less than the fines as described by chrismac.

del86

I'm not sure what you mean by appropriate income, could you explain this to me?

For the year 14/15 the income will be zero as the property was void does this help me in any way? There will be a loss for this period.

[Deleted User]

Appropriate income - there was no trading partnership which had property income. Either you successfully persuade HMRC that the partnership UTR was set up in error or you complete it. If you choose the latter you could enter the date of commencement and date of cessation as the same date -the 'business' never traded. You then complete a partnership short on your individual returns with this same information.
The loss does not change the fact that you have to complete the returns. What date did your friend state the 'partnership' as having commenced?

del86

I'm sure it was 1.3.15.

Sorry to ask all these questions but what is a partnership short?

[Deleted User]

del86 wrote: »

I'm sure it was 1.3.15.

Sorry to ask all these questions but what is a partnership short?

When you complete your personal return this is the section relevant to income from partnerships - the partnership short is actually a paper form - please ignore my attempt to confuse you!

Dazed_and_confused

It looks as though you (or your so called friend) has either massively over complicated this or your original query has been misunderstood.

The previous responses are based on you having rental income which you think you need a partnership for - is this correct or do you have rental income AND a completely separate, unrelated to the rental income, partnership?

If you only have the rental income then you have over complicated things but it looks like you and your fiance need to do the following,

1. Buy some commercial software and file a partnership tax return for 2014:15 using the partnership UTR reference number (it is unclear exactly what you would be entering on this form but presumably your accountant friend can help you with this).

2. File your own tax return for 2014:15 using your own personal UTR. Unless you have some complication not previously mentioned you can probably do this via HMRCs website and you will need to fill in the income from property page, partnership short page (to reflect what your share of any partnership profit or loss was from the partnership return) and any other relevant sections i.e. employment page(s)

3. File your fiance's tax return for 2014:15. Unless she has some complication not previously mentioned she can probably do this via HMRCs website and will need to fill in the income from property page, partnership short page (to reflect what your share of any partnership profit or loss was from the partnership return) and any other relevant sections i.e. employment page(s)

booksurr

del86 wrote: »

I'm not sure what you mean by appropriate income, could you explain this to me?

For the year 14/15 the income will be zero as the property was void does this help me in any way? There will be a loss for this period.

what chrismac and purdyoaten are getting at is that it is rare for HMRC to accept that a trading partnership exists where the only activity is rental income. Given all you do is split rental income between you and the wife the partnership should never have been created

read: http://www.hmrc.gov.uk/manuals/pimmanual/pim1030.htm
"Where property is owned jointly with one or more other persons the way the rental income is taxed depends on whether the letting is carried on in partnership. Joint letting does not, of itself, make the activity a partnership.

Usually, there won't be a partnership and the taxpayer’s share from the jointly owned property will be included as part of their personal rental business profits"

given the timescale you have little option but to submit the partnership having bought the software to do so. You should then close the partnership and go back to basics, that probably includes consulting someone a bit more experienced than a newly "graduated" friend

del86

Thanks for this information. It's a bit of a mess but seems it can be resolved with a bit of work which is the important thing.

chrismac1

In fact I'd say that if you buy decent software you might stick with it. Taxcalc, which I use for 20 or so partnerships per year, enables you to link the partnership return into each partner's so if you make changes it all updates at the click of a button.

Another option is to put 5 April 15 as the cessation date on the partnership return. You'll need to then write to HMRC to tell them and ask them to close down the partnership UTR, as their software does not have a flag in it to tell them about cessation dates, being rubbish software. They'll take 12 weeks to open the letter, but this is not a big deal as they can take 12 months to close down the UTR and it will still be OK.