City tax partners have long accused HM Revenue and Customs (HMRC) of unfairly treating all partnerships as tax avoidance vehicles but in a new report published last week, the government body appears to be taking steps to reset the relationship, albeit only shortly after announcing that salaried partners will be treated as having a ‘disguised salary’ and must be taxed as employees.
The review of partnerships by the Office of Tax Simplification found that more needs to be done to counter the feeling that the HMRC views them ‘as if they were exclusively avoidance vehicles’.
