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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I finished a partnership in a business in May 2012, I have

Resolved Question:

I finished a partnership in a business in May 2012, I have put in my personal tax returns, but received a letter today saying I have a penalty of £100 because I haven't put in a tax return for the business, the business stopped trading in May 2012, the letter must have gone to the business address and I never received it and I wasn't aware that I had to put in a tax return for the business, what do I need to do next?
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

Hi.

If a partnership exists, a tax return has to be completed and submitted for the partnership as well as for each partner. If the partnership tax return is submitted late or not at all, each partner is fined £100. The partnership tax return should contain the accounts figures and balance sheet figures (a balance sheet isn't compulsory) for the accounting period and it also splits the profit or loss between the partners. You can see what the partnership tax return SA800 looks like here.

You need to complete a partnership tax return for the final accounting period which ended on a date in May 2012. HMRC's online service has no facility to complete and submit a partnership tax return as you will read here. You will either need to ask the tax office for a paper return or buy an inexpensive commercial software. Google "online SA800". You should appeal against the penalty if you want to dispute it but you are unlikely to be successful if you do. It's certainly worth a try. Take a look here for information on reasonable excuses.

 

If the form the tax office have asked you to complete is not a form SA800, then that may get you out of completing the SA800 itself.

I hope this helps but let me know if you have any further questions.

TonyTax and 2 other Tax Specialists are ready to help you
Customer: replied 3 years ago.

Hi Thankyou for your advise, I will try to appeal the penalty, do you think that the tax letter was sent to the business address, which was closed and not forwarded on is a good enough excuse?

Expert:  TonyTax replied 3 years ago.
Thanks for accepting my answer.

The address issue might be accepted. It's difficult to say. HMRC can be inconsistent on this. Had the return been issued to one of the partner's personal addresses, that would make it more difficult to appeal successfully.
Customer: replied 3 years ago.

Thank you again, hope you get to bed soon

Expert:  TonyTax replied 3 years ago.
Thanks, I will.