I need to complete my first Self Assessment. I have rental property which my wife and I own. So assuming 50/50 I just put both our expenses and income at 50/50 easy.
But I've been told as it's a partnership I also need to do a return for the company. Is this correct?
Do you have a partnership agreement and do you have a company?
If the answer is no to both these questions then it should be safe to allocate the 50/50 split to each individual self assessment on the Land and Property pages.
Well as you appreciate, you've gone further down the road than at first apparant so please read the following as discussion more than advice : to paraphrase Groucho Marx: That is my answer and if you don't like it, I have others.
The Deed supports Form 17 split but if going down this route I would go the whole hog and also have a partnership agreement, witnessed by a solicitor. A lot hangs on dates here and I guess HMRC could attack these arrangements on many facts such as the names in title deeds and on the mortgage and especially the dates if you're changing names after the income or losses you're declaring, arose. If it were possible, though you would complete a partnership Return and the supplements. There. I completely changed my answer.
Depending on what is at stake, it may be advantageous to hold the properties in a company. That would distance the husband/wife ownership but there is a lot for you to consider and there are others who may have succeeded with this beneficial ratio. Obviously any indication that this is purely being done for tax advantage could be detrimental. If I was a Tax Inspector I would be more satisfied if there was another purpose for the arrangements.
Just found out I need to file HMRC SA400 to register Partnership and HMRC SA401 for each partner.
Anyone know if I will get a fine for late notice as partnership started on 06/04/2012, and I recall something about Self assessment needs to be registered by 5th October?
Damn, I just realised I forgot to register my wife for Self Assessment as well, I assume a fine here for sure?
