Limited Liability Partnership(LLP)

cab37

Hello, I am wondering if any of you kind people could help me out a little here. My company of which I was employed by on PAYE decided to put us in a Limited Liability Partnership(LLP), where i think they save some dough but means we are self-employed and have to pay for an accountant every year to sort stuff out, which actually costs us £300, so seems to be no benefit what-so-ever to us but out employers seem to be happy with it. Does anybody out there know that there are benefits for me about this ie being able to write things off against tax etc, my accountant reckons only a computer can be, any help much appreciated

thanks in advance

WHA

This seems a peculiar situation - surely you had a say in what was happening - as a partner in the business you have rights and responsibilities and it is very surprising that you are in this situation apparently knowing little about what is going on. You really should have got your own accountant and solicitor involved when this was first suggested as you have now lost all your employment rights.

You should be paying less tax and NIC than as an employee and should be able to claim any "wholly and exclusive" expenses.

To be honest, it sounds like your accountant is not giving sound advice - perhaps time to get someone else.

cab37

thanks for your reply!well basically we were on a commision at work receiving a % of profits and we were told that our profit share would have to be renegotiated if we didn't join the LLP (as i think they save 13% employers tax). But we dont pay a lower rate of tax, but yes maybe i do need to change accountants, I am using a large firm at present, i have heard of people setting up a corporation within the LLP, and my finance director said i could do this but it would have no benefit,however, i'm not too sure he is on the ball with it!can anybosy recommend an accountant who has experience with this LLP situation? thank you once again

Cook_County

There are employment law considerations too. If the employer is planning on paying you less than comparable workers if you do not sign up then he may lose at the employment tribunal.

On the positive side the employer would find it very difficult to fire you once you are an LLP member because you'd have to resign from the LLP and you might insist on a shed-load of cash to do just that.

I would start by speaking to an employment lawyer because that is probably where your employer is getting advice.