More partnership problems

Following Mark Howitt’s letter regarding partnership tax returns (Partnership problem) I have a similar problem.

I was asked three weeks ago to act for two young art school graduates – both self employed for a couple of years – who had submitted their own tax returns online.

They felt tax was ‘too complicated’ for them. They had formed a partnership in April 2008 and did not realise they needed to register this with HMRC.

They thought they could ‘just include it on their returns’ but did not know how to do so and thus approached me.

I also do not have commercial software having only another two partnerships so the late submission of the paper return will attract two £100 penalties.

The partnership’s only income was an enterprise grant and it incurred a loss in 2007-08 which will be carried forward as other income was...