SoS (604) Partnership Tax

SCHEDULE OF SERVICES (604) UNINCORPORATED PARTNERSHIP TAX

This schedule should be read alongside your letter of engagement (LoE) and the (300) Standard Terms & Conditions.

Recurring Compliance Work

We will prepare the partnership self-assessment tax returns and the annual partnership statements, together with any supplementary pages required, from the information and explanations the partnership provides to us. We will allocate the split of profits and other gains between the partners on the basis you provide. After obtaining the nominated partner’s approval, we will submit these to HMRC online.

We will prepare the income tax and capital gains tax computations based on the partnership’s business accounts for inclusion in the partnership tax return.

Where you instruct us to do so, we will advise you on possible claims and elections arising from information supplied by the partnership.

If instructed, we will provide each partner, or their agent, with details of their allocations from the return to enable them to complete their personal self-assessment tax returns. We will not provide information to individual partners unless this is authorised and forms part of a separate engagement.

If any individual partner requires personal tax advice, or wishes us to prepare their personal tax return, this will be subject to a separate letter of engagement — SoS (601) Personal Tax for Individuals.

Ad hoc queries by, for example, telephone or email are not part of routine compliance and may result in additional fees. Where possible, we will discuss and agree any additional fees in advance, but this is not always practicable and we reserve the right to charge for such work.

Making Tax Digital (MTD)

If you or any of the partners are subject to Making Tax Digital for Income Tax (MTD IT), please refer to SoS (602) Making Tax Digital for Income Tax, which sets out the service tiers available and our respective responsibilities.

If the partnership is also VAT registered and we are engaged to prepare your VAT Returns, MTD for VAT obligations are covered separately under SoS (610) VAT Returns.

Ad Hoc and Advisory Work

Where instructed by the nominated partner, we will provide such other taxation ad hoc and advisory services as may be agreed from time to time. These services are subject to the terms of your LoE and the (300) Standard Terms & Conditions, unless we issue a separate engagement letter. An additional fee may apply.

Examples of such work include:

Advising on the in-year capital gains tax (CGT) reporting requirements on disposals of property, and preparing the in-year return and calculating the CGT due where required. We will need you to provide information as early as possible, and in advance of exchange of contracts, to advise on the tax implications, reporting requirements, and to quantify the tax liability.
Advising on ad hoc transactions and queries (including telephone conversations and pre-sale advice on the disposal of assets), preparing and submitting information to HMRC, and calculating any related tax liabilities.
Advising on double tax relief where appropriate.
Dealing with any enquiry opened into the partnership tax return or the tax affairs of the partnership by HMRC.
Preparing any amended returns that may be required and corresponding with HMRC as necessary.
Advising on employment taxes, workplace pensions (including auto-enrolment), and the employment status of your workers.

If specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists. We will only do so when instructed by the nominated partner.

Partnership Data and Individual Partner Returns

Where we are also engaged to prepare individual partners’ personal tax returns under SoS 601, we will use the partnership return data — including each partner’s profit allocation, other income, and allowances — directly in that engagement. No separate data handover will be required. If you do not wish us to use the data in this way, please ask the nominated partner to notify us.

Your Responsibilities

The partners are legally responsible for:

Ensuring that the partnership self-assessment tax returns are correct and complete.
Filing returns by the due date.
Paying tax on time.

Failure to comply may result in penalties and/or interest charges.

Taxpayers who approve their returns cannot delegate this legal responsibility to others. The nominated partner agrees to check that the returns and partnership statements we have prepared are correct and complete before approving them.

To enable us to carry out our work, you agree:

That all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances, and capital transactions.
To provide all information necessary for dealing with the partnership’s tax affairs. In particular, you are responsible for providing us, via the nominated partner and in writing, with details of each partner’s allocation of profits, losses, other income, and allowances. We will rely on the information and documents you provide being true, correct, and complete. We will not audit them.
To authorise us to approach such third parties as may be appropriate for information we consider necessary to deal with the partnership’s affairs.
To provide full details of all UK residential property disposals, including associated costs and valuations, prior to disposal. Where any partner may be non-UK resident in the tax year of disposal, full details of all UK property disposals (residential and non-residential), disposals of shares in UK property-rich companies, and disposals of interests in UK property-rich collective investment vehicles must be provided to us prior to exchange of contracts or agreement to transfer. If information is received after this point, we cannot guarantee that we can advise on the CGT due or submit an in-year return within the 60-day reporting window following completion of the disposal.
To provide us with information in sufficient time for the partnership tax return to be completed and submitted by 31 January following the end of the tax year. If you wish us to submit the return by 31 October, we must receive all relevant information by 31 July. If you wish us to submit the return by 31 January, we must receive all relevant information by 31 October. Where we agree to complete the return within a shorter period, an additional fee may apply.
To have paid our fee in full before we submit your return to HMRC. Where work is complete but our fee remains unpaid, we reserve the right to withhold submission.

You will keep us informed of material changes in circumstances that could affect the tax liabilities of the partners, including changes in the composition of the partnership. If you are unsure whether a change is material, please let us know so we can assess its significance.

Where you want us to deal with HMRC communications, please forward all correspondence to us promptly. HMRC is not obliged to copy us in on communications sent directly to you, so it is essential that you pass these to us in time for us to act within any statutory time limits.

You are responsible for monitoring the partnership’s turnover to establish whether it is liable to register for VAT. If turnover exceeds the VAT registration threshold and you wish us to assist in notifying HMRC, we will be pleased to help. You should notify us in good time to enable a VAT registration form to be submitted within one month following the month in which the threshold was exceeded. We will not be responsible for any late-registration penalty if you fail to notify us in time.

You are responsible for employment taxes, pensions (including auto-enrolment), and the employment status of your workers. We are not responsible for penalties arising from obligations outside our agreed scope.

As part of our normal procedures, we may ask you to provide written confirmation of any oral information and explanations given to us during the course of our work.

Limitation of Liability

Our services are subject to the limitations on our liability set out in your letter of engagement (LoE) and in the (300) Standard Terms & Conditions. These are important provisions and you should read them carefully.