The Government is planning changes to the taxation system applying to Limited Liability Partnerships.  From 6 April next year, the intention is to categorise “salaried partners” as employees for tax purposes.  This will result in an increase in costs for such partnerships, as a result of extra National Insurance Contributions becoming due, plus an adverse impact on cash flow, because of the new requirement to pay PAYE/NIC on a monthly basis.
The charges will be brought in as part of wider measures on ‘disguised remuneration’
Anyone involved in such arrangements should seek advice to determine how best to proceed in future.

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