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Where Taxpayers and Advisers Meet

Income Tax and Partnership Return

Unclened
Posts:5
Joined:Sat Sep 18, 2010 3:05 am
Income Tax and Partnership Return

Postby Unclened » Tue Feb 12, 2013 1:22 pm

Hi,

My wife and I run a part time photography business. I pay tax at 40% threshold and my wife is a full time mum otherwise. In addition to completing our first self assessments recently, we just wanted a few pointers on our partnership return. As I work full time and don't input into the photography, other than assist her on shoots, my wife and I have an agreement for her to take the £15,000 of income. Therefore I have zero income on my self assessment and my wife has a profit of £5,500.

I have the commercial software to complete the partnership return but was a little confused as to whether the partnership had to also show a profit of £5,500? In her self assessment, we referred to the £5,500 as her income and left the partnership column blank as it was double counting her income and stating it as £11,000.

Any help would be much appreciated! :)

LozaACCS
Posts:1504
Joined:Wed Aug 06, 2008 3:55 pm

Re: Income Tax and Partnership Return

Postby LozaACCS » Tue Feb 12, 2013 11:32 pm

If the partnership made a profit of £5,500 and all of it was allocated to your wife then that amount is shown on the partnership return and included in the column for your wife.
On her self assessment return she does not enter the amount as self employment, but should enter the amount as partnership income.

Unclened
Posts:5
Joined:Sat Sep 18, 2010 3:05 am

Re: Income Tax and Partnership Return

Postby Unclened » Fri Feb 15, 2013 12:04 am

thank you for the advice. i ended up submitting the partnership with the nil return and left the income in my wifes self assessment. Not happy, will be looking for a professional accountant to sort everything out from now on :cry:

nikkisizer
Posts:342
Joined:Fri Nov 04, 2011 5:26 pm
Contact:

Re: Income Tax and Partnership Return

Postby nikkisizer » Fri Feb 15, 2013 5:53 pm

thank you for the advice. i ended up submitting the partnership with the nil return and left the income in my wifes self assessment. Not happy, will be looking for a professional accountant to sort everything out from now on :cry:
Happy to help if required :)
Kind regards,

Nikki Sizer

Sizer & Co Accountants
nikki@sizeraccountants.com
[url]http://www.sizeraccountants.com[/url]

Birmingham - London - Manchester - Leeds


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