LLP IS AT HAND
AMONG all the possible tax rises floated by the Treasury ahead of the 26 November budget – on pensions, property, ISAs and even a manifesto-busting 1p on income tax – one looks the most obviously fair.
This is the idea of levying employer’s national insurance on the profits taken by partners of “limited liability partnerships” (LLPs). As the Eye’s respected former columnist ‘Slicker’ pointed out long ago, these corporate vehicles were introduced by the previous Labour government as a sop to accountancy firm partners who feared losing their houses if sued over Enron-era failures. LLP bosses’ risks are limited in much the same way company directors’ are, but they keep the huge 15 percent national insurance advantage.