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HMRC internal manual

Self Assessment Manual

HM Revenue & Customs
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Records: set up taxpayer record: set up partnership record (Action Guide)

The Central Agent Authorisation Team (CAAT) at NICO is responsible for setting up partnership records from form SA400 and these forms should be forwarded there. Do not include any correspondence other than form 64-8.

When you receive details of a new partnership, or new partnership trade, consider steps 1 - 13 below. The guide is presented as follows

  Steps 1 - 5
  Steps 6 - 9
  Steps 10 - 13

For details of how to access any of the SA functions, select ‘Index Of Functions’ on the left of the screen.

Initial action

1. Ensure that an SA record does not already exist for the partnership. Use function TI to access the National Tracing System
  * If a Unique Taxpayer Reference (UTR) is shown, an SA record exists
  * If a Schedule D reference is shown, use function RETRIEVE UTR FROM D REFERENCE to establish the UTR. If there is a UTR, an SA record exists
2. Where an SA record exists, bear in mind that a partnership may carry on more than one trade, although the SA record can hold only one live trade source
  * Use function VIEW PARTNERS FOR PARTNERSHIP to establish the names of the partners
  * Where the partners in that partnership are the same as those in the partnership for which you have now received details
  * Subject to the Note below, do not set up a new SA record. Treat this as a case of multiple trade sources
  * Where the partners in that partnership are not the same as those in the partnership for which you have now received details, the form SA400 refers to a new partnership
  * Continue to follow this Action Guide. A new SA partnership record, for the new partnership, is required
  Note: You should also set up a new partnership record where asked to do so by any one of the Inspector, partnership or agent.
3. Obtain completed form SA400, if not already held. Subject ‘Notification Of New Partnership’ (SAM100135) tells you about the procedure
4. Check whether a LLP2 for a Limited Liability Partnership has been received from CRI via the area office
5. Check whether or not form 64-8 is held. If so, you will need this when setting up the SA record

Setting up an SA record

| 6. | Use function SET UP PARTNERSHIP, to create a basic partnership record. Any entries to designatory fields must be made in UPPER CASE | || | 7. | Use function SET UP TRADE to enter partnership trade details | |   | * If the source is within the construction industry | |   | * Use function MAINTAIN COMPLIANCE SIGNALS to enter on the SA record the nature of the partnership’s involvement in the construction industry | |   | * Issue form P510 to the relevant PAYE office / section, if the business has employees | | 8. | If today’s date is after the automatic selection process for returns issue on 6 April next has run, or you need to issue a return for CY-1 | |   | * Use function RECORD RETURN REQUEST to select the relevant year for automatic issue of a return
More detailed advice is given in subject ‘New Commencement Cases’ in the section ‘Returns Issue’ (SAM120070). | | 9. | Where there is no agent acting | |   | * Advise the partnership of the UTR allocated, and to be quoted in future correspondence |

Particular circumstances

| 10. | Where there is an agent acting | || |   | * Use function TAXPAYER NEW AGENT DETAILS to establish the national agent code and to enter it on the partnership record | |   | * Advise the agent of the UTR allocated to the partnership SA record | | 11. | Where you have been advised which partner is to be the nominated partner, see subject ‘Maintain Taxpayer Record: Nominated Partner’ (SAM101290), for the partnership | |   | * Use function AMEND TAXPAYER SIGNALS to enter ‘Nominated partner ……… (name) ………. (UTR)’ in the Free Format Notes field of the partnership SA record | |   | * File the nomination in the permanent notes folder within the partnership file | | 12. | Use function ADD/AMEND COMMUNICATION NAME AND ADDRESS where the partnership has asked for correspondence to be issued | |   | * In a name other than the partnership name
Or | |   | * To an address different to the partnership address | | 13. | If either of the following apply | |   | * All of the partners in the partnership are companies
Or | |   | * One or more, but not all, of the partners are companies, and the partnership accounting date falls in the period 1 February to 5 April inclusive | |   | You should also | |   | * Use function AMEND TAXPAYER SIGNALS to set the Manual Return signal on the partnership record | |   | And | |   | * Note on the partnership permanent notes pad that the Manual Return signal has been set because of a non-standard filing date | |   | Note: Bear in mind that having set up the partnership record, the computer will not prompt you at a later date if the partner-partnership links have not been made from the partners’ individual records. A clerical or B/F control is advisable. | |   | The SA record for one or more partners may be the responsibility of another office. Where the partner record is the responsibility of your own office, you may decide not to issue written advice. |