The salaried members rules are set out in ITTOIA 2005 ss 863A–863G and provide for the determination of a Limited Liability Partnership (LLP) member as either self-employed or employed for tax purposes. The rules were brought in to remove the presumption of self-employment to tackle the disguising of employment relationships through LLPs. To address the perceived inconsistency of an individual needing to have the characteristics of a partner to be determined as such in a traditional partnership but within an LLP an individual needing only to be registered as a member the rules are based around three conditions which focus on certain characteristics of partnership to identify those individuals whose relationship with the LLP is more akin to that of an employee: sharing in profits...
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The salaried members rules are set out in ITTOIA 2005 ss 863A–863G and provide for the determination of a Limited Liability Partnership (LLP) member as either self-employed or employed for tax purposes. The rules were brought in to remove the presumption of self-employment to tackle the disguising of employment relationships through LLPs. To address the perceived inconsistency of an individual needing to have the characteristics of a partner to be determined as such in a traditional partnership but within an LLP an individual needing only to be registered as a member the rules are based around three conditions which focus on certain characteristics of partnership to identify those individuals whose relationship with the LLP is more akin to that of an employee: sharing in profits...
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