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Can partners claim individual expenses without putting them through the partnership?

29th February 2012

Answer: No

Only if the expenses are put through the partnership accounts (give the expenses to the partnership accountant)

What a partner cannot do is claim his personal (business) expenses against only his share of the business income. For example, if he wanted to put use of his home broadband through the business he couldn’t do it on an individual level. He would need to give the amount to the partnership accountant. The partnership would then take the deduction and he simply takes his share of the partnership profit/loss on his personal tax return as per usual.

per HMRC helpsheet:

http://www.hmrc.gov.uk/helpsheets/hs231.pdf

“The claim for relief for any expenditure incurred by a partner on behalf of the partnership must be included in the computation of the partnership’s business profits.It is not possible for individual partners to make personal claims, whether to expenses or capital allowances.