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On assessing the various enterprises of our new client Mac it seems that he runs a farm in the north of England in partnership with his brother Don.
The bank accounts and VAT registration are under Mac and Don trading as ‘Old MacDonald’s Farm’ and the property has been jointly owned by them since 2005.
The previous accountants did not prepare partnership tax returns stating:
‘this has been treated as self employment on the basis it is just ownership of land and that no trading has taken place’.
The income received is from a combination of stewardship scheme woodland scheme and short-term grazing licences.
Mac’s last tax return was for 2006/07.
In our opinion the income received by the farm is trading income and partnership tax returns should therefore have been prepared.
The dilemma is...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
