Firms need to take urgent action following government
confirmation of imminent new tax rules.
Apart from the introduction of Limited Liability Partnerships
(LLPs) in 2000 there have been few changes to partnership taxation
for many years. However, last year HMRC became concerned that
partnerships and LLPs were being used in ways that it did not like
and it launched a consultation focusing on two main areas of
concern. The Government has now published detailed draft
legislation effective from 6 April 2014 which will change the
landscape considerably for many partnerships.
Salaried partners
The first area of HMRC's concern involved the categorisation
of individual members of an LLP between those who are self-employed
and those who will in future be deemed to be employees for tax
purposes.
