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Where a business is set up as a partnership the IRIS tax products decide whether a set of partnership pages or self employment pages should be printed based on the number of people involved with the partnership during the period.
Where the program treats a partnership business as a sole trade it displays a message to that effect when the period is selected.
This topic helps you through various different situations where a change of business type is required, either by admitting a partner to a Sole Trade or by a partner leaving a Partnership resulting in a Sole Trader.
Below are various scenarios where a partnership changes to a sole trader and vice versa. Each case includes:
information regarding the return pages printed from both Personal and Business Tax; and
a link to a worked example.
Making the changes to a client in Accounts Production - this link will take you to further help that explains how to change a sole trade to a partnership and vice versa.
Business Tax:
Prints a partnership return with an end date automatically entered in box 3.8 for the period in which the partner leaves.
Treats the business as a sole trade for any future periods.
Personal Tax:
Prints partnership pages for all partners for this tax year
Prints self employment pages for future periods.
To see a worked example click here.
Business Tax:
Generates two sets of partnership return pages:
One for the accounting period which ends during the tax year
One for the accounting period which ends during the next tax year
Both sets of pages will contain:
Figures on the trading and professional income pages
A date of cessation in box 3.8
A date of cessation against the departing partner.
Partnership pages will not be generated in the following tax year as they have already been returned in the preceding period.
Personal Tax:
Generates partnership pages for all partners for this tax year and the following tax year.
For periods after that, Personal Tax will generate self employment pages.
To see a worked example click here.
Business Tax:
Generates a partnership return for the period with a date of commencement automatically entered in 3.7. Personal Tax:
Generates partnership pages for this period and future years.
To see a worked example click here.
Business Tax:
Treats the business as a sole trade if the account period selected in the toolbar is the one ending in the tax year.
Treats the business as a partnership and generates a set of partnership pages with a date of commencement automatically entered in 3.7 if the account period selected in the toolbar is the one ending in the next tax year.
Whether a partnership return is required depends on the type of income received by the business,
a return is required if any income that is returned for the tax year was received.
a return is not required if the business only had income received from the trade.
Personal Tax:
Prints self employment pages for the trader for this tax year
Prints partnership pages for the new partner for this tax year
Prints partnership pages for all partners thereafter.
To see a worked example click here.
Business Tax
Prints a partnership return for any accounting period where more than one person was involved in the trade.
Treats the business as a sole trader for any period where the business
was exclusively carried out by one person.
Personal Tax
If one of the accounting periods is purely as a sole trader, two sets of pages will be printed:
Sole trade pages showing the accounting information but with page 3 blank and box 3.10 ticked.
Partnership pages showing the profit/loss from the partnership account periods with an adjustment showing the profit/loss from the sole trade period.
To see a worked example click here.
When a notice to file has been delivered by HMRC to a partnership or an individual, a self assessment tax return must be completed and returned to them.