LLP, corporate partners and IR35

A surveyors practice with a number of employees in addition to the directors wants to adopt an LLP structure. Consideration is being given to having the 3 human partners as individual partners in the LLP and a 4th partner which would be a limited company.

The intention would be to allocate a small profit share to the 3 individuals and the much larger balance of profits to the corporate partner.

The shares in the corporate partner would be equally owned by the 3 individual partners and dividends would be paid to them from the ltd company.

Given that the LLP's income would be generated by both the human partners and a number of employees, could IR35 be said to apply to the profit share allocated to the Corporate partnerĀ in this situation?

Any discussion on this would be very welcome.

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Unclear of your assumptions

mikewhit |