Salary query
PatsyC
Registered Posts: 27 New contributor 🐸
Hello again, I have another couple of guys who work in a relatively new LLP together. Up until now one/or sometimes both of them have been taking drawings from their profits on an ad hoc basis. Lately they are taking a standard amount which rang alarm bells for me because of HMRC and disguised salary payments from LLPs. I raised this with them and they have asked whether they could both take a salary and pay PAYE/NIC monthly rather than work as self employed. I am unsure about this, I know HMRC accept one partner on a salary but am unsure about both. I am thinking perhaps they would have been better to become a Limited company but any help would be appreciated.
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Comments
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Are they partners in the LLP? If they are, they can't take a salary with PAYE/NIC, they will just take a 'partners salary'.
I had one client which was an LLP and I incorporated them which save a huge amount of tax, plus there was all the goodwill which I brought into the company. I did this just before the changes to goodwill and partners salaries in LLPs.1
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