Overview
A partnership is a popular trading vehicle through which two or more people can own and run a business together and for accountants, the tax involved continues to be an interesting subject area.Â
At Centre of Accountancy Careers and Training Ltd this course will enable the learners to understand the structure of partnerships and examine the formalities of partnership taxation. Trainees will also learn how partnership profits are calculated and shared between the relevant partners and how to deal with the taxation if a partnership changes.Â
The course uses HMRC approved software (Taxfiler by IRIS) to ensure the most efficient way to calculate and manage the taxation of Partnership clients. The course will describe the procedural requirements that need to be in place to ensure that filing deadlines are met and payments are made on time so that the risk is reduced of HMRC levying unwanted penalties and charging interest.
CONTENT
Partnerships
- What is a partnership?
- How can we tell if a partnership exists?
- What is a partnership agreement?
- Why does partnership matter?
Income and Gains
- How are partnership profits calculated?
- What basis periods are used for tax purposes?
- How are partnerships taxed?
- What about VAT and taxation of profits?
- How are partnership profits allocated to the partners?
Potential Problem Areas
- What happens when a new partner joins a partnership?
- What happens when a partner leaves a partnership?
- What are the consequences of switching from sole trader to partnership and vice versa?
- What happens if the partnership changes its accounting date?
Administrative Matters
- What are the procedures for partnership tax returns?
- What is the filing deadline for the partnership return?
- What if the partnership accounts cannot be finalised in time?
- When should the partnership accounts provide for tax payments?
- What are HMRC enquiry procedures for partnerships?
- What penalties can be imposed for non-compliance?
Partnership Tax Return in TaxFiler
- Setup the partnership in Tax Filer
- Record all the details about the partners
- Record New Partner in the Partnership
- Create a New Partnership Tax Return
- Record all the sources of Income and Expenses relevant to the trading activity of the business
- Calculation of Capital Allowances (If needed)
- Partnership profits allocated to the partners
- Complete the (SA 800) Partnership Tax Return
- Complete the supplementary pages of the Tax Return
- Complete the Partnership property (SA801)
- Complete the Partnership foreign Income (SA802)
- Complete the Partnership Disposal of Chargeable assets (SA803)
- Complete the Savings and Investments (SA804).