The long-trailed 2014 budget yesterday (19 March) brought few surprises to the legal business community, although nonetheless some disappointment, as it confirmed that changes to the way limited liability partnerships (LLPs) are taxed will be pushed through in April.
Despite well-publicised calls from the profession and the House of Lords Economic Affairs Committee for the Government to push back plans to revise the way LLPs are taxed, the budget confirmed that any LLP partner with under 25% of their salary attached to profits will be regarded as having a ‘disguised’ salary and be taxed as an employee.
