Practical effects of becoming a salaried member
Earlier this year, Gateley reported on the government’s proposed changes to the tax treatment of certain members of limited liability partnership (LLPs). Despite strong protests from bodies such as the Law Society and the Institute of Chartered Accountants in England and Wales, the government has refused to back down and the changes will be implemented next month.
The changes mean that, with effect from 6 April 2014, an individual who provides services to an LLP will be taxed as an employee (rather than on a self-employed basis) if: 80 per cent or more of the member’s remuneration is fixed or not dependent on the overall profits and losses of the LLP; the member has no significant influence over the LLP’s affairs; and the member’s capital contribution is less than 25 per cent of their remuneration.
But what are the practical effects of these changes for the member and the LLP? …
Click on the link below to read the rest of the Gateley briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Gateley
News from The Lawyer
Briefings from Gateley
Since they were brought in there have been 23 sets of amends to the Insolvency Rules 1986. In 2015/16 the landscape of insolvency legislation will once again change.
The behaviour of employees on social media and an employer’s ability to discipline inappropriate behaviour has been a hot topic for some time.
Analysis from The Lawyer
The Law Society recently published guidance to assist solicitors draw up Shariah-compliant wills, causing outrage in some quarters. Gateley’s Haroon Rashid explains the facts.