Wilson v HMRC

In Wilson v HMRC [2020] UKFTT 230 (TC) (20 May) the FTT decided that a ‘fixed income member’ of an LLP was self-employed and therefore liable to pay NICs in respect of profits arising to him 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 Mr Wilson was to receive £180 000 a year out of the total profits of HW 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. In his tax returns for 2011/12 and 2012/13 Mr Wilson recorded the income from HW as profit from a partnership but his return...