My Dad died in January 2016. On the date of his death, he had a business partnership with my Mum. The partnership had been running in one form or another for around 20 years, but at the date of death my Mum was doing all of the work for it and was splitting the profits with my Dad 80/20 in her favour.
There was no formal partnership agreement, and the partnership wasn't mentioned in my Dad's will. Am I therefore correct in thinking that the partnership ceased to exist on my Dad's death, and that any work my Mum did after that date she did as a sole trader?
Also, the accounting period for the partnership ran from April 13th through to April 12th of the subsequent year. This meant that when my Mum submitted the SA800 for the 2014/15 "partnership" year, the profits from that year were allocated to my Mum and Dad's 2015/16 self assessments and they paid income tax on that basis. What should we do with the money that was owed to my Dad by the partnership in the 2015/16 "parternship" year (i.e., the year my Dad died)? Should it be included on his final self assessment, i.e. the one for the 2015/16 income tax year, or should we file a 2016/17 self assessment even though he wasn't alive for any of that period?
And yes, I know these tax returns are all very late and I'm braced for whatever fines HMRC throw our way...
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