EM7528 - Partnerships: SA and partnerships: correction by HMRC

An officer of HMRC can amend a partnership return without opening an enquiry into the return in order to correct

• an obvious error or omission. ‘Obvious’ means that there can be no doubt what the correct entry should be. This could include correcting arithmetical errors and errors of principle. See the guidance at SAM121530 - 1
• anything else that the officer has reason to believe is incorrect based on the information already held and where no more information is needed

To correct a return, notice must be given to the nominated partner, or their successor.

Effect on the partners’ returns

Once the partnership return is corrected, the partner’s returns must also be corrected so as to give effect to the corrections made to the partnership return. Partners must be notified, in writing, of the change to their returns.

Time limits

Corrections by HMRC can only be made within 9 months of the return being delivered to HMRC or, if the correction is required to be made to an amended partnership return, within 9 months of the amendment.

Rejecting the correction

There is no right of appeal against a correction but there is a right of rejection. 

The nominated partner, or their successor, can reject a correction of a return by notice, in writing, within 30 days. This means that the correction has no effect and the partnership (and where appropriate, the partners) returns are put back to the original figures.  

If the nominated partner does not reject the correction in the time allowed, they may still be in the time allowed to amend the return. If HMRC do not agree with the amendment, they can only dispute it if they enquire into the amended return.

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