Was there a partnership?

Penalties for failure to submit partnership return

HMRC notified a partnership RS between the taxpayer and B to file a partnership return for 2011-12 by 31 January 2013. On the basis that none was submitted it issued penalty notices on 12 February and 14 August 2013.

The taxpayer filed the return electronically on 7 August. He appealed against the penalties but HMRC rejected it. The taxpayer asked for a review which upheld the penalties. He appealed.

Judge Richard Thomas in the First-tier Tribunal decided it was first necessary to consider whether there was a partnership at all for 2011-12. The taxpayer said although it had filed a form SA400 to register the partnership in September 2011 it was not agreed until May 2012 – HMRC said it had not received the form. Before that the taxpayer ran his business on his own account. Further ...