LLP Salaried Partners

LLP Salaried Partners

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The new rules affecting Salaried Partners in LLP's coming into force in April, whereby HMRC will seek to re-state salaried partners as employees, will this apply to salaried partners in 'normal' non LLP partnerships?

Logic tells me it will, but, as we all know logic is not always right! 

Replies (4)

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By Triggle
12th Mar 2014 13:10

It only applies to LLPs not general partnerships,

I don't think the actual new provisions have been published yet but here's ICAEW's take on it:

http://www.ion.icaew.com/TaxFaculty/post/LLP-salaried-partner-rules-conf...

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By Steve Kesby
12th Mar 2014 14:41

Agreed

The new legislative rules only apply to members of LLPs.

The rules are drawn from the existing case law tests that already apply to conventional partnerships. See BIM82025.

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By neilcedar
13th Mar 2014 12:04

Thank you

Many thanks for both of your responses, much appreciated.

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By MJShone
13th Mar 2014 12:14

I agree with Steve

The new rules only apply to members of LLPs. However, that's only because the existing legislation said that members of LLPs should be treated as self-employed for tax purposes. Therefore the usual tests as to whether someone is an employee or self-employed has always applied to partners in non-LLP partnerships. Those tests are different to the tests set out in the current draft legislation re LLP members.  

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