Salaried partners

Salaried partners

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One of my clients has appointed an employee as a salaried partner. The salary is the same as before, but his name now appears on the letterhead. Should PAYE still be applied to the salary?
SJD

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By User deleted
24th May 2008 14:44

"Appointed" ? How ?
Well, he may be on the letterhead but is new boy sharing in losses as well as profits--the latter presumably by way of a first tranche to be termed "salary". Even more important for me (I always looked for this) have all relevant individuals (including new boy) signed a new or revised deed of partnership which actually states enough to leave no argument about status under the Partnership Act ?
I think you are right to be obviously wary about advising the termination of PAYE here until far more is known about the manner of the "appointment".

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