Self assessment Parntership Form

[Taf]

The partnership year runs from September 2004 to September 2005. Somewhere on the partnership form it states that if no accounting period ends in 2004-05 then either an estimate should be provided or no information should be completed.

I am confused as to what I should do-if anything at all, if i do an estimate do I make my estaimte from September to April onlyor September to September,

If I do nothing how do we reflect this on our individual income tax returns.

[deanshepherd]

If this is your first partnership return (i.e. you commenced trading in September 2004) then the partnership return will not include accounting figures for the reason you state.

The accounting figures will all go on next years partnership return.

Your individual tax returns should reflect the income attributable to the basis period Sept 04 to April 05 and you will have overlap profits to include on your next years returns.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk

[Taf]

Thank you.

[King_Maker]

Depending on the profitability (or losses) of the period to 5 April 2005, it might be advantageous to draw up some accounts to 5 April 2005. This should give more accurate figures than the usual time apportionment method. Make sure the tax savings outweigh the extra accountancy costs.

You may even wish to consider an alternative year-end to 30 September - 5 April or 31 March will avoid the "overlap" profits (but that is not the only criterion to consider). I still tend to favour 30 April, but each circumstances are different.

Your first accounting period can be up to 18 months, so there is no need to decide yet. However, you still need to make the correct tax payment for 2004-05 by 31 January 2006.