Jan 182015
 

Updated January 2016

In the case of Drilling Global Consultant LLP v HMRC, a limited liability partnership (“LLP”) was denied the annual investment allowance on upgrading an aircraft on the basis that its members weren’t all individuals. The result is a straightforward application of the capital allowances legislation. However, the arguments put forward by the LLP are of some interest, as well as being totally wrong.

(This article can be downloaded in pdf format at Academia.edu.)

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Partnerships and Disguised Employment – turning business owners into employees

 Partnership Tax  Comments Off on Partnerships and Disguised Employment – turning business owners into employees
Jun 042013
 

HMRC has published its Consultation Paper on partnerships, which can be found at the GOV.UK website. There are two areas being targeted:

  • Disguised employment – relating to limited liability partnerships or LLPs only. Partners who are in substance employees, will be treated as employees – leading to a potentially higher tax bills for both “employee” and the LLP;
  • Profit and loss allocation schemes – where profits and losses can be shifted between various members of the partnership to minimise the overall tax burden. It is proposed to stop this from happening.

In this article we shall look at the proposed new rules for disguised employment. Profit and loss allocation schemes will be discussed in a later article. Continue reading »