Changing Partership to Sole Trader

[mayobus]

My husband was in a partnership with his mother (she was not taking any money from it) until last year when she handed the business over. Stamp duty etc was paid. We have continued to process VAT, PAYE etc under the partnership number with revenue but I now find out that we should have ceased the partership and commenced a sole-tradership. The partership accounts year ends in May.

Should I cease the business now and register as a sole trader even though the actual business being carried on is unchanged?
If so, do accounts need to be done to date of cessation and will this have any tax implications?

 

[Graham_07]

Cessation accounts for the partnership should be prepared to date of cessation. The sole trader then commences from that date. A new VAT/employer registraton for the sole-trader is needed. Assuming you have an accountant you need to talk with them as a matter of urgency.