How are partnership appeals dealt with?

Partnership appeals have specific procedures that differ significantly from individual appeals. Here’s how HMRC handles them:

Who Can Make Partnership Appeals

Strict Authority Requirements:

• Must be made by the nominated partner on behalf of all relevant partners
• OR by an authorized agent acting for the partnership/nominated partner
• Appeals from non-nominated partners will be refused
• Tribunals may reject appeals not made by the nominated partner

Verification Process: If it’s unclear who the nominated partner is, HMRC will:

• Issue SEES form SA670 to confirm the nominated partner’s name
• Make a Free Format Note on the Partnership record noting either:
  • “DD/MM/YY SA670 received. Nominated partner is [name]”
  • “YY/YY box 11.3 shows nominated partner as [name]”

Alternative Acceptance: Appeals can be accepted from:

• Partner shown in box 11.3 on internet-filed returns (current or previous year)
• Person who signed the paper return (if box 11.3 is empty)
• Agent acting for all partners (though verification may be needed for large partnerships)

Special Circumstances

Death of Nominated Partner:

• Successor is generally the person nominated by majority of other partners
• Must include personal representative of deceased partner in the majority
• SEES form SA670 must be issued to confirm new nominated partner

Agent Representation:

• Can accept from agent acting for all partners
• For large partnerships (hundreds of partners), practical verification may not be possible
• Issue SA670 to confirm nominated partner details

System Recording Process

Unique Aspects for Partnerships:

1. Record Location:
   • Appeal recorded only on partnership record
   • Do NOT record on individual partner records
   • Use penalty imposition date as charge creation date (may need to check partner records to find this)
2. Standover Procedures:
   • Informal standover penalty in full on each individual partner’s record
   • Note work list items: “Working with Partnership, responsible office and UTR”
   • Not necessary to record appeal on individual partner records
3. Cross-Reference Management:
   • Partner records should note any work list items
   • Include reference to partnership responsible office
   • Maintain clear audit trail between partnership and individual records

Settlement Process

When Appeal is Settled:

1. Update Individual Records:
   • Where possible, update each individual partner’s record
   • Reduce standovers to nil
   • If direct updating not possible, inform responsible office for each partner
2. Tribunal Considerations:
   • Ensure tribunal understands they’re considering penalties on all partner records
   • Provide clear documentation of all affected partners
3. Communication:
   • Notify all relevant offices of settlement outcome
   • Ensure consistent treatment across all partner records

Penalty Application Rules

Late Filing Penalties:

• All partners charged if partnership return not filed by due date
• Appeals must go through nominated partner
• Try to settle immediately if possible

Processing Approach:

• Handle through partnership record using nominated partner authority
• Apply informal standovers to individual partner penalties
• Maintain coordination between partnership and individual records

Administrative Notes

Work List Management:

• Appeals appear on partnership work list
• Individual partner standovers noted separately
• Cross-referencing essential for tracking

Documentation:

• Retain clear records of nominated partner status
• Document any changes in partnership composition
• Maintain audit trail for tribunal purposes

Quality Control:

• Regular review to ensure all partner records updated
• Coordinate between multiple responsible offices if needed
• Monitor for prompt settlement across all affected records

This partnership-specific process ensures that while the appeal is centrally managed through the nominated partner, the practical effects (like standovers) are properly applied to all affected individual partner records, maintaining both legal compliance and administrative efficiency.