HMRC is currently consulting on two aspects of the tax rules for partnerships, aiming to reduce tax losses arising as a result of disguised employement and certain profit and loss allocations. These areas are:

1. the presumption of self-employment for some LLP members who disguise themselves as self-employed to obtain more favourable tax treatment than their employed counterparts, and

2. countering the manipulation of profit and loss allocations (by LLPs and other partnerships) to achieve a tax advantage.

The consultation opened on 20 May 2013 and the closing date for comments is 9 August 2013. If you wish to make a comment, click here.

Curo Chartered Accountants

June 2013

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