INCOME TAX – Partnerships invited to reclassify members for tax and NICs

INCOME TAX – Partnerships invited to reclassify members for tax and NICs

Limited liability partnerships (LLP) are being advised to review the status of all their members in the light of new rules, effective from 6 April, reclassifying many of them as employees for tax purposes. Meanwhile HMRC has introduced a new form allowing LLPs to register ten or more partners at once for self assessment and national insurance, rather than on individual forms SA401 or SA402.