Posted Other Tax News byin
HMRC have undertaken a review of two key aspects of LLPs. The changes, which are intended to impose additional tax and National Insurance Contribution liabilities on arrangements which they believe are implemented to reduce tax:
- Remove the presumption of self-employment for some members of limited liability partnerships, and
- Seek to counter the manipulation of profit or loss allocations by some partnerships and LLPs to achieve a tax advantage, for example to incorporated partners.
I hear that some firms of accountants and lawyers set up as LLP’s are looking at the proposals closely!