The government is to press ahead with its plans to bring in its limited liability partnership (LLP) tax reforms on 6 April 2014 in spite of the House of Lords Finance Bill Sub-Committee (FBSC) calling last week for a delay, following critical evidence from the Law Society about the impact on soli
The government is to press ahead with its plans to bring in its limited liability partnership (LLP) tax reforms on 6 April 2014 in spite of the House of Lords Finance Bill Sub-Committee (FBSC) calling last week for a delay, following critical evidence from the Law Society about the impact on solicitors.
As reported last week in Tax Journal, the FBSC argued that a postponement until 2015 is necessary to allow business to adapt to the changes and for a fuller consultation to be carried out to target the legislation properly.
The government plans to introduce legislative tests to determine if an LLP member is an employee or a partner. Passing all three tests would make the LLP member liable for income tax and NIC as an employee while, at the same time, the LLP would also be required to pay employers’ NIC.
Following the Budget announcement, Gary Richards, chair of the Law Society Tax Law Committee, said: ‘The Law Society is disappointed that the government is insistent on enforcing the changes to LLP salaried member tax rules from 6 April 2014, despite the House of Lords’ report last week which mirrored our own concerns with the proposal, and called for any changes to be delayed until next year. There is no evidence that these changes will generate substantial revenue – nor has any explanation been given as to why it is acceptable to place UK LLPs at a disadvantage in comparison to non-UK LLPs or general partnerships, neither of which will be subjected to these new rules.’
The government is to press ahead with its plans to bring in its limited liability partnership (LLP) tax reforms on 6 April 2014 in spite of the House of Lords Finance Bill Sub-Committee (FBSC) calling last week for a delay, following critical evidence from the Law Society about the impact on soli
The government is to press ahead with its plans to bring in its limited liability partnership (LLP) tax reforms on 6 April 2014 in spite of the House of Lords Finance Bill Sub-Committee (FBSC) calling last week for a delay, following critical evidence from the Law Society about the impact on solicitors.
As reported last week in Tax Journal, the FBSC argued that a postponement until 2015 is necessary to allow business to adapt to the changes and for a fuller consultation to be carried out to target the legislation properly.
The government plans to introduce legislative tests to determine if an LLP member is an employee or a partner. Passing all three tests would make the LLP member liable for income tax and NIC as an employee while, at the same time, the LLP would also be required to pay employers’ NIC.
Following the Budget announcement, Gary Richards, chair of the Law Society Tax Law Committee, said: ‘The Law Society is disappointed that the government is insistent on enforcing the changes to LLP salaried member tax rules from 6 April 2014, despite the House of Lords’ report last week which mirrored our own concerns with the proposal, and called for any changes to be delayed until next year. There is no evidence that these changes will generate substantial revenue – nor has any explanation been given as to why it is acceptable to place UK LLPs at a disadvantage in comparison to non-UK LLPs or general partnerships, neither of which will be subjected to these new rules.’
