In P Wilson v HMRC [2021] UKUT 239 (TCC) (29 September 2021) the Upper Tribunal upheld the decision of the FTT that a ‘fixed income member’ of an LLP was self-employed and therefore liable to pay NICs on profits arising from the LLP.
In November 2011 Mr Wilson entered into an arrangement with Haines Watts LLP (HW) under which he became a fixed income member of the LLP. Under the arrangement he was to receive £180 000 a year out of the total profits of HW (the ‘first charge’) plus 25 % of the profits from the international tax practice which he led. He enjoyed substantial voting rights as a member of the LLP although he was not entitled to vote on certain matters including the admission of new members. Initially Mr Wilson recorded the income from HW as profit from a partnership but his return...
