Jitendra Patel (BDO) provides a guide to the salaried members rules that were introduced in 2014 to deal with ‘disguised employment’ of members of limited liability partnerships.
Limited liability partnerships (LLPs) were introduced by the Limited Liability Partnerships Act (LLPA) 2000 with effect from 6 April 2001. An LLP is a body corporate with separate legal personality offering limited liability for its members but with greater regulatory provisions than for traditional partnerships including audit requirements and the obligation to file accounts at Companies House. Generally the tax rules operate by treating LLPs and their members in the same way as traditional partnerships and their partners. Broadly this means that an LLP is not treated as separate and distinct from its members and the members themselves are treated as carrying on the business of the LLP in partnership with each other.
LLP members: partner or employee?...
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Jitendra Patel (BDO) provides a guide to the salaried members rules that were introduced in 2014 to deal with ‘disguised employment’ of members of limited liability partnerships.
Limited liability partnerships (LLPs) were introduced by the Limited Liability Partnerships Act (LLPA) 2000 with effect from 6 April 2001. An LLP is a body corporate with separate legal personality offering limited liability for its members but with greater regulatory provisions than for traditional partnerships including audit requirements and the obligation to file accounts at Companies House. Generally the tax rules operate by treating LLPs and their members in the same way as traditional partnerships and their partners. Broadly this means that an LLP is not treated as separate and distinct from its members and the members themselves are treated as carrying on the business of the LLP in partnership with each other.
LLP members: partner or employee?...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
