They would be eligible for rent a room relief as individuals but put turnover through LLP used for cafe. In year 1 it was advantageous to ignore rent a room as set up expenses exceeded income. That will not be true in year 2. They wish to continue with putting the revenus through the LLP for insurance purposes but would reduce tax if the income can be viewed as non taxable in LLP with no expenses claimed.
Companies cannot claim RRR but can LLP in this situation, and if so, do you simply treat the income as non taxable in LLP's computation?