SAM122230 - Returns: partnership returns: repairing obvious errors: partnerships

At any time before the end of a period of nine months, beginning with the day on which the partnership return is received, you may repair that return to revise any mistakes or obvious errors.

Obvious errors include those shown up by the computer whilst entering return details. Examples include arithmetical errors or the carry forward of the wrong figure from one box to another.

Small mistakes should not be repaired, the error may be over-ridden and you should accept the figure shown (SAM122165). For example if the return entry is round pounds do not repair the entry to include pence.

Where the amount of tax deducted from investment income is incorrect, or there is an arithmetical error, it will not be obvious which box or boxes contain the wrong figure(s). In these circumstances you should accept the taxpayer’s figure in the gross income box.

The computer does not have any upper limit on the amount that can be repaired. If in any doubt, the partnership figure should be entered and accepted. The position can be clarified at the Check Later stage.

You must always make a note against the return entry where you have repaired or accepted the figure.

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If it is necessary to repair any of the Standard Accounts Information (SAI) on the partnership return, you should refer the case to an Inspector to consider the effect on other aspects of the return.

We must not carry out a repair without notifying the person who completed the return that we have done so.

The responsible person has the right to reject our repair to an obvious error. The rejection must be in writing within 30 days of the issue of the notice notifying the repair. The legislation is at 9BZ(4) and (5) TMA1970.

If an agent is acting a rejection can be accepted from the agent.

If the nominated partner, see subject ‘Maintain Taxpayer Record: Nominated Partner’ (SAM101290), has filed the return on time, they can amend that return within 12 months of the filing date. In these cases they are not limited to the 30 day rejection rule.

In practice the 30 day rejection rule will only be applied where a return is filed 11 months after the filing date or later.

The repair of one entry may have a knock on effect to a subsequent entry, where this happens you need only note the original entry as a repair.

Exceptionally, where an entry is illegible or it is impossible to decide what the correct entry should be, an experienced member of staff may contact the person responsible for completing the return, but ensure

  • You use the telephone or exceptionally if you have been given permission by your manager write to the person responsible. You must make it clear that the query

    • Does no more than clarify unclear handwriting or incorrect arithmetic
    • Is designed to allow you to process the return on the basis of the figures supplied

When corresponding with the person responsible for completing the return you must refer to the repairs as revisions. 

If you have any difficulty identifying an error you should accept the partnership’s supplied figure.

Any information from the partnership or agent may be used to repair an obvious error, including additional information with the return or third party information supplied by the partnership or agent. You must not use third party information that has not been supplied by the partnership to repair an obvious error.

When a partnership return has been repaired, the partnership statement will need to be amended to reflect the amended figures. You should ensure that a copy of the revised partnership statement is sent with your letter (Word 32KB)(This content has been withheld because of exemptions in the Freedom of Information Act 2000) notifying the revisions you have made. You must also issue a notice to each partner, making corresponding amendments to their self assessments.

If a partner’s return has not been received, when the partnership return is amended, retain the notification in the annual run of returns until the return is eventually received, when it can be checked that it is correct. Record the details in SA Notes for the partner. If a partner is dealt with in another office you will need to notify that office of the amendments which need to be made by them.

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