HMRC crackdown on the tax treatment of salaried members of LLPsDecember 2013
On Tuesday 10th December 2013, HMRC published draft legislation for inclusion in the Finance Bill 2014, which is likely to have a significant impact on construction professionals operating as limited liability partnerships.
A member of an LLP that meets certain conditions will be treated as an employee for tax and NICs purposes, rather than as self-employed. The changes apply from 6 April 2014 so LLPs only have a few months in which to review which of their members are at risk and obtain tax and legal advice on legitimate steps which might be possible to restructure their arrangements.
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