A client who is currently a partner of a partnership is considering forming a one man limited company which would invoice the partnership for their partnership "Salary" in respect of providing income generating work they currently do as a partner. As a partner they would recieve any residual profit share as trading income personally. By my understanding this wouldnt be a mixed partnership as the company wouldnt be a member of the partnership and seems more akin to a partnership service company as discussed in BIM82070, albiet only owned by one partner.
Just wanted to know if anyone is aware of anything which would preclude this structure from working. My concern is that the trade of the company are not a seperate from the trade of the partnership, rather the same (unlike say a partners ltd company renting out property for use by a partnership). It would be preferable to dispose of their partnership share and simply invoice as a seperate limited company, albiet this would have possible IR35 implications.