PAYE to self-employed (LLP) queries

Semantic

Hi all,

I am currently in a standard employed role and I have been offered a position as a partner in an LLP at another firm (financial services) with a % of profits etc. From what I have read this will mean that I switch from being taxed on a PAYE basis to something similar to self-employment (although I pay income tax on all profit I receive).

I have some questions I was hoping someone could help me with:

1. As a partner I will receieve a salary and a lump sum for moving, with a final profit distribution at the end of March 2011. Would it be correct that I don't pay any tax or NI on any of this now, but would rather fill in the self assessment April 2011 and pay the tax and NI in January 2012?

2. Do I notify the HMRC as soon as I sign on to the new place or when I actually start in the office? I have a 3 month notice period at my current employment and so have to work that out here, but I know one has to notify HMRC within 3 months?

Thanks!

Semantic

fengirl_2

Its not similar to self employment, it IS self employment.
1. Yes, but you also pay class 2 NIC monthly starting from the date you join the partnership.
2. The 3 mth grace period has been abolished - you register with HMRC as soon as you start with the partnership.