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HMRC internal manual

Enquiry Manual

HM Revenue & Customs
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Penalties: Incorrect Returns, Accounts etc: Partnerships - SA Years

This guidance applies to returns with a filing date on or before 31 March 2009.

Guidance for returns and other documents with a filing date on or after 1 April 2009, where the return relates to a tax period beginning on or after 1 April 2008, is contained in CH80000+.


The partnership return is delivered by the nominated partner EM7021 but tax (and penalties for incorrect returns) are personal to the individual partners. S95A provides the linking legislation.

It applies when the nominated partner fraudulently or negligently EM5100+ delivers

  • an incorrect partnership return
  • an incorrect statement or declaration in connection with partnership return
  • incorrect accounts.

Liability to penalties also arises where the fraudulent or negligent submission of an incorrect return etc. by the representative partner is attributable to fraudulent or negligent conduct on the part of some other relevant partner.

Each relevant partner is liable to a penalty based on the difference between

  • the amount of Income Tax, Capital Gains Tax, Class 4 NIC or Corporation Tax payable by him or her for the relevant period (including any Income Tax deducted at source and not repayable), and
  • the amount which would have been so payable if the return etc. submitted by the representative partner had been correct.

The advice at EM4801+ should be adopted as necessary.

Where agreement cannot be reached and penalty determinations are required, appeals against the determination can only be brought, as for Section 93A, by the representative partner. Any such appeal will be a composite appeal against each of the penalty determinations and, for the purposes of Section 100B(3), the representative partner is treated as the person liable to each of the penalties.