IEIM721090 - Partnerships

As with individuals who are self-employed, partners in a partnership will be intermediaries in their own right if they undertake activities that bring them within the definition of intermediary.

However, as with groups of companies, there is no issue in practice with one partner, or the partnership as an organisation, taking responsibility for making any reports required under the Regulations on behalf of all the partners in the partnership.

Where there is a failure to comply with the requirements of the Regulations, and a penalty is due, the partner who is the intermediary will be the one liable to the penalty, rather than the partner who took responsibility for the reporting. However, partnerships may, as part of their profit sharing agreements, provide that liability for penalties will be shared between partners.

In determining whether a person who is a partner is liable for a penalty, and in particular whether the person has a reasonable excuse for the failure, HMRC will take into account any processes and procedures that the partnership had in place in applying regulation 20(3) (see IEIM750080 and IEIM750090).