Limited liability partnerships and disguised remuneration

By Niall Murphy

Shoosmiths commented in a previous article, issued on 2 December 2012, about HM Revenue & Customs’ (HMRC’s) proposals to tighten up the rules allowing members of a limited liability partnership (LLP) to be treated as self employed.

Draft legislation and guidance from HMRC was issued on 10 December following on from the earlier consultation. This legislation will apply from 6 April 2014, but is not likely to be in final form until July 2014.

As noted in a previous article, members of an LLP are currently automatically deemed to be self employed. As a result, a number of businesses have taken advantage of this presumption to make people, who in normal circumstances would be treated as employees, members of the LLP so as to save employers’ National Insurance…

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