Can't LLPs have ordinary employees

A friend has been offered a job. The employer is an LLP.

He has been offered a package based on him being a Member entitled to a fixed profit share of the profits.

 

It seems this has been set up to save tax. He will be saving 3% NIC. And will "technically be self employed so can deduct expenses" - the employers words.

 

Is this the new wheeze? There's nothing wrong with a genuine partnership arrangement whereby a junior partner is a paid a fixed income. But my friend isn't self employed. Is this just a new way of getting around the employment status issue. Are all workers of an LLP now members??? Don't they have ordinary employees?

 

Thank you.

Comments
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Yes they can have employees & No they are not all members

ACDWebb |
ACDWebb's picture

Yes on all counts

Steve Kesby |
Steve Kesby's picture

Thank you to both replies.  I

HeavyMetalMike |

A member is deemed s/e

ACDWebb |
ACDWebb's picture

I would add

The Innkeeper |

Different issue - just for info

tonycourt |

Just to add my two pence worth...

Steve McQueen |
Steve McQueen's picture

Interesting

tonycourt |

That's my understanding...

Steve McQueen |
Steve McQueen's picture

Practising Certificate

Louise A Williamson |

Would there not be IR35

Eric T |

My thoughts exactly.

HeavyMetalMike |

IR35 can't apply...

Steve Kesby |
Steve Kesby's picture

What about risk?

Eric T |

What about risk?

Steve Kesby |
Steve Kesby's picture

Don't HMRC often look beyond

Eric T |

Steve is right and

tonycourt |

Genuine partnership

davidkirk |

Yes but

Steve Kesby |
Steve Kesby's picture

Just so

davidkirk |