Inaccuracy in a document
There are special provisions for partnership returns. If the nominated partner files an inaccurate partnership return, that partner is not only liable to a penalty in their own right but also incurs a 'partner's penalty' for which they and every other member of the partnership are jointly liable.
The partner's penalty is treated as a separate penalty for the purposes of the provisions on degrees of culpability, potential lost revenue, disclosure, special reductions and assessment1. Therefore the other partner(s) may take advantage of those provisions to a greater or lesser extent than the nominated partner.
If a partner's personal return is inaccurate, a penalty can be imposed for this as well as the penalty for the inaccurate partnership return. Potential lost revenue is calculated separately for the purpose of determining an individual penalty, and is by reference to the proportions of any tax liability that would be borne by each partner had the return been correct2.
HMRC's guidance contains an example of the calculation of potential lost revenue for partnerships3.
Any suspension will apply jointly to the