EM7502 - Partnerships: reviewing the partners returns

When you are undertaking a review of a partnership return you must review and include even minor and sleeping partners as they may be involved in any evasion or may be the person responsible for how it is being achieved. 

If you do not look at all the partners, you may fail to identify or address all the risks of error or evasion. Also, settlement with one partner alone may seriously weaken or prejudice the HMRC position in relation to other partners in the partnership if their affairs are later found not to be in order. 

When you open an enquiry into a partnership return you should also give a notice of enquiry into each of the partners personal returns (under s.9A for individual partners or Para 24 Sch18 FA98 for corporate partners) of each partner who was a member of the partnership during the return period. 

The enquiry into a partner’s own return is subject to the normal time limits in its own right.  

If any of the partners has not filed his or her return by the time you have decided to open an enquiry consider making a determination, see EM2027.  

If it is the partnership return you are waiting for you could consider instituting early forcing action by way of imposing a late filing penalty.