½Û×ÓÊÓƵ

Where the person whose employment status it is wished to change is an employee of a partnership, the change in his status may be brought about in a relatively simple and watertight manner by his elevation to the position of salaried partner. Yet care is still necessary.

Firstly, from 6 April 2014, a member of a LLP who meets three conditions will now be treated as a salaried member and fall within the category of employed earner for NIC purposes (Class 1 primary contributions will be due from the member and he or she will be entitled to SSP, SMP, etc). The LLP (ie those members seen as genuinely sharing the profits) will be liable as the secondary contributor and will be able to claim a tax deduction for the salaries, benefits in kind and Class 1 and Class 1A NIC liabilities. As a deemed employed earner, the salaried member cannot be liable to pay Class 4 contributions on his profit share¹.

A member will be a salaried member if he, either directly or through an intermediary,