A client is a courier. All of the couriers originally were paid directly by the contractor that they worked for. The contractor then changed the rules and insisted that all couriers had to become members of an LLP through which the couriers were subsequently paid. The couriers must accept this situation or seek self-employment elsewhere. The LLP is VAT registered and accounts for VAT via the flat rate scheme , 10% for couriers. The designated members are not couriers, they simply administer the LLP. It's the courier members who incur all of the expenses that justify the 10% flat rate, yet the designated members pocket all of the resultant profit; they even refuse to pay VAT to VAT registered members. I'm considering taking it to a small claims court. Any thoughts on the legality of the designated members' actions?