New tax rules for LLP members
By Edward Hoare and Tanya Shillingford
The government has issued draft anti-avoidance legislation to be included within the Finance Bill 2014, which overrides the current presumption that a member of an LLP is self-employed for tax purposes and is not an employee. This is in response to HMRC concerns that individual members of LLPs are benefiting from being treated as self-employed for tax purposes, in circumstances where those members are effectively in the position of an employee.
The details that have been released include draft legislation, together with a technical note and guidance from HMRC. The new rules will take effect from 6 April 2014 and will apply to all UK LLPs, but will not apply to general or limited partnerships or to LLPs formed under the law of jurisdictions outside the UK.
Under the new rules, a member of an LLP will be treated as ‘a salaried member’ (i.e. employed), unless he fails any of the following three tests…
If you are registered and logged in to the site, click on the link below to read the rest of the Goodman Derrick briefing. If not, please register or sign in with your details below.
News from Goodman Derrick
Briefings from Goodman Derrick
The Court of Appeal delivers an important decision in the turbulent area of relief from sanctions for non-compliance with court rules or orders.
The Inheritance and Trustees’ Power Bill received royal assent on 14 May to become the Inheritance and Trustees’ Power Act 2014.
Analysis from The Lawyer
Active financial management is vital, but with firms looking more closely at the process of debt and fee collection, the personal touch still counts
The lure of the law can kick in at any stage of life. We speak to four individuals who have made a radical switch to a legal career