SAM122160 - Returns: partnership returns: unsatisfactory partnership returns

General
Exception
All cases

General

The return must 

• Be electronically filed, or be on the HMRC paper form, or be a computer generated version which is identical to the official HMRC form. Note: For years up to, and including 2006-07, an approved alternative (but not faxed) was accepted
• Be signed by the correct person, including a person acting in any capacity. This includes where signature on a partnership return is illegible and the signatory has not printed their name below the signature
• Include all supplementary pages indicated on the return as being necessary. Note: A spreadsheet, table or list providing details which should be on separate supplementary pages (multiple trades or accounting periods) is not acceptable
• Include details in all boxes which should have been completed on the return, unless the information can be obtained from elsewhere. Note: These cases can only be identified during capture of the return
• Include the partner’s name in box 6, and Unique Taxpayer Reference in box 8 of the Individual partner details on the Partnership Statement. Note: Further information is also available for returns where ‘mandatory boxes’ have not been completed in subject ‘Mandatory Boxes: Partnerships’ (SAM122110).
• Not include entries

• • ‘Per attached’, and the information cannot be easily identified from the details supplied. Note: A spreadsheet, table or list providing details which should be on separate supplementary pages (multiple trades, partnerships, accounting periods) is not acceptable
  • ‘To follow’, which indicates that required information has not been filed
  • ‘Per enclosed accounts’, and the SAI has not been completed correctly

An unsatisfactory return is a return that fails to satisfy the filing requirement of Section 12AA TMA1970 as stated in the 'Notice to File'.

Section 12AA TMA1970 requires that returns provide information reasonably required for the purpose of establishing the amounts in which a partner is chargeable.

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Exception

The exception to these general rules is

• The omission of information in support of a Tax Credit Relief claim on the Foreign Income pages. This will not make a return unsatisfactory if

• • Liverpool Large Business Office has agreed the omission with the partnership

• • The entry is supported by a claim to partial exemption from UK tax on income by a dual resident

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All cases

All cases where it is considered an unsatisfactory return has been received should be reviewed for the next appropriate action by an experienced officer.

If, following the review, it is considered that the return could in fact be treated as satisfactory, the experienced officer should

• Identify all omissions and errors
• Obtain all information possible from the return and enclosures and, where the information can be easily identified, make repairs to the return entries

If, following the review, the return is still considered as unsatisfactory, no repairs of obvious errors should be made and the form should be sent back without any amendment (with any relevant missing supplementary page for completion where applicable). If it does not satisfy the requirements then it is not a return and we can only correct a return.

Where the return is unsatisfactory because the unique taxpayer references (UTR) for non-UK resident partners are missing, follow the guidance at SAM122112 (partnership returns with missing UTR’s where the partner is non-UK resident).

An unsatisfactory return must be rejected and sent back to the nominated partner, see subject ‘Maintain Taxpayer Record: Nominated Partner’ (SAM101290) or agent who submitted it (only to an agent where 64-8 held). Where an agent is acting, a letter should also be issued to the other party notifying them of the action taken.

Note: If, in a case where an agent is acting, it is not possible to tell who submitted the return, it should be sent back to the partnership as it is their ultimate responsibility to ensure that a satisfactory return is submitted.

Unsatisfactory returns received before the filing date and which are being sent back within 14 days before 31 October (or within 14 days of any other filing date), should be unlogged before the return is sent back for completion by the nominated partner or agent who submitted it.

These returns will have been marked with a red spot for identification purposes. On receipt of such returns, the SA Notes should be reviewed for the date the return was sent back as unsatisfactory. The necessary action should then be taken in accordance with the Action Guide (SAM122161).

Notes: 

All returns that are rejected must be accompanied by a letter explaining why it is being sent back. The correct letter should be issued in accordance with the table below. Where a period longer than 21 days is to be allowed the relevant letter, SA604, should not be used. A locally produced letter should be issued stating the number of days considered reasonable in which to send back the return.

For the avoidance of doubt the 21 day period of grace, or longer where allowed, only applies where the return is unsatisfactory as a result of a genuine oversight. It does not apply where the return is deliberately unsatisfactory, in an attempt to take advantage of the period of grace. For example, the 21 days, or longer where allowed, do not apply if a return is deliberately sent in without a relevant set of pages, to buy a little more time to complete those pages. Nor does it apply if a return is deliberately sent in without a signature, to buy a little more time to obtain the signature. If you come across a case where an unsatisfactory return is sent in several years running, refer it to an experienced officer to decide whether the 21 day period of grace, or longer where allowed, can be given or not.

Note: A partnership with a turnover of £15 million or more or a CT partnership is not required to complete the SAI boxes in the partnership return, but must instead file its accounts and computations.