Market leading insight for tax experts
View online issue

Class 2 NIC and LLPs

printer Mail

The Social Security Contributions (Limited Liability Partnership) (Amendment) Regulations, SI 2015/607, clarify that the class 2 NIC treatment of inactive members of LLPs is the same as that of sleeping partners and inactive limited partners with effect from 6 April 2015. HMRC has treated sleeping and inactive limited partners as self-employed earners liable to class 2 and class 4 NIC since April 2013. The regulations modify the definition of ‘employment’ for NICs purposes to include membership of a limited liability partnership carrying on a trade. Members of a limited liability partnership are to be treated as self-employed earners for NIC purposes unless they fall within the salaried member rules.