For many in the asset management industry 1st April beckons in the start of a new accounting period for their LLP with the annual focus on closing the books to prep for the auditors in the run up to the FCA filing deadline. However, it is also the time that LLPs are required to review and document their compliance with the salaried member rules. Annual assessment is imperative under the legislation to demonstrate why a LLP is not operating PAYE on partner remuneration. HMRC’s interpretation of the rules has diverged in recent years following amendments to the HMRC guidance and the stance adopted in recent litigation. LLPs should look to the year ahead, reassess and document their position. It is very difficult to argue a position in hindsight without contemporaneous evidence. For more detail on the rules and steps required please see our article Tax Adviser Magazine published in the November 2019 and our summary in the AIMA journal on the BlueCrest Case both co-authored with Francis Fitzpatrick QC.
20th February, 2023