BN66 - Time to fight back!!!

[TheGadgetMan]

I see lots of talk about these partnership accounts on the board and I think it is important to point out that there is a difference between cash received and what should appear in the partnership accounts.

Partnership accounts should be worked out on an accruals basis, not a cash in hand basis. For example if the partnership accounts cover a period that ends on the 31 March and the partnership raised an invoice for services during March, but that invoice wasn't paid or even raised until after the 31 March the amount of the invoice would still rightly belong in the accounts for that period. Who knows how accurately the periods will be split, but the same would apply if you worked a week that was split between two accounting periods in which case it should be apportioned.

It is the case however that if you add up all the amounts you received and all the partnership accounts over the years you should end up with something that is right, but you probably won't be able to do that until you have ceased to operate in this way as you will always have some accounts you are still waiting for.

The self-assessment returns should have been completed on the same basis as you were beneficially entitled to the trust's income as it arises (not when it is distributed) and the trust's income is the underlying profits of the partnership.

perfectly put...no more be said....

[BolshieBastard]

I see lots of talk about these partnership accounts on the board and I think it is important to point out that there is a difference between cash received and what should appear in the partnership accounts.

Partnership accounts should be worked out on an accruals basis, not a cash in hand basis. For example if the partnership accounts cover a period that ends on the 31 March and the partnership raised an invoice for services during March, but that invoice wasn't paid or even raised until after the 31 March the amount of the invoice would still rightly belong in the accounts for that period. Who knows how accurately the periods will be split, but the same would apply if you worked a week that was split between two accounting periods in which case it should be apportioned.

It is the case however that if you add up all the amounts you received and all the partnership accounts over the years you should end up with something that is right, but you probably won't be able to do that until you have ceased to operate in this way as you will always have some accounts you are still waiting for.

The self-assessment returns should have been completed on the same basis as you were beneficially entitled to the trust's income as it arises (not when it is distributed) and the trust's income is the underlying profits of the partnership.

Well I hope MP explain that to HMRC since the SCO is making an issue out of the different numbers on the return and draft accounts!

[BrilloPad]

Well I hope MP explain that to HMRC since the SCO is making an issue out of the different numbers on the return and draft accounts!

Scottish Chamber Orchestra? ahhhh - Special Compliance Office. Is that Mr Brannigan? (BTW hello )

I expect they will have to explain it several times - HMRC dont really understand accounts. They only real know thuggery and bullying...

[bobbyboy]

For those of you on this thread who used Steed rather than MP, I understand they are having various management meetings with their tax advisors as we speak and will be deciding the best way to respond to HMRC shortly. Wait an hope I Guess.

[BrilloPad]

For those of you on this thread who used Steed rather than MP, I understand they are having various management meetings with their tax advisors as we speak and will be deciding the best way to respond to HMRC shortly. Wait an hope I Guess.

- Steed has always been a loan scheme so nothing to do with bn66?

[BrilloPad]

back on topic - did anyone see the tesco tax avoidance stuff - http://www.guardian.co.uk/business/2008/jul/30/7

Tesco tax avoidance schemes can form part of libel case, judge rules

In a preliminary high court hearing, Mr Justice Eady ruled that the paper could file evidence of Tesco's tax avoidance by means of specially created partnerships and holding companies in Switzerland and Luxembourg. One such Tesco scheme was outlawed by the government in this year's budget legislation. The two schemes are alleged to have avoided up to £30m a year in UK tax on Tesco profits.

==================================================

Does this mean TEsco also fall foul of BN66? Will they be standing beside montp in court for the judicial review?

[normalbloke]

Don't think the Tesco issue is anything to do with BN66. It's just being brought up as part of a libel case. They seem to have exploited one loophole after another to avoid CT and SDLT. No retrospection is mentioned either.

[elpinar]

can anyone just answer - CTD - Closure notice - interst - what interst do you loose if you get a CTD after a closure notice? the stopping of the inflated HMRC interst amount or the paltry 2% they deign to give you on the sum? ..... the former makes a CTD pointless - the latter just makes it a bit more annoying....

[DonkeyRhubarb]

can anyone just answer - CTD - Closure notice - interst - what interst do you loose if you get a CTD after a closure notice? the stopping of the inflated HMRC interst amount or the paltry 2% they deign to give you on the sum? ..... the former makes a CTD pointless - the latter just makes it a bit more annoying....

I wasn't aware that a closure notice had any effect on a CTD. MontP will be instructing us to appeal against the closure notices, and until the appeals process has run it's course and we get a final tax demand, the CTD will continue to stop any further interest.

If anyone knows differently, let us know.

The "paltry 2%" only comes into play if you withdraw money from the CTD ie. if our appeal is successful and we don't have to pay a tax demand.

[DonkeyRhubarb]

Money laundering

It seems that the Government doesn't practise what it preaches.

I have just taken out a CTD without having to supply any proof of ID. What's more, I have recently moved house and haven't got round to informing HMRC yet.

I thought that they would have at least cross-checked my name and address on their database but apparently not as the certificate arrived yesterday.

So, if you need to clean some dirty money, you know where to go!