There’s a changing outlook for director-shareholders in family companies. Recent developments, such as the change to the dividend allowance and National Insurance Contribution (NIC) rates, and potentially higher Corporation Tax rates, all mean remuneration may need rethinking. Checking the numbers in your own particular circumstances becomes increasingly important.

There are a few tax issues to be aware of when transitioning from an employee to a partner. The below details the scenario of your tax position as an employee and what it would mean for you becoming a partner. If you are a Limited Liability Partnership (LLP) member, all comments below are subject to you being treated as self-employed for Income Tax and National Insurance (NI) under the Salaried Member Rules.

Introduced in 2014, the salaried members rules are anti-avoidance provisions, which remove the presumption of self-employment for some members of Limited Liability Partnerships (LLPs), with a view to tackling ‘disguised remuneration’ through LLPs.

Following the consultation on the new legislation and Code of Practice, the new tipping legislation which was originally due to come into effect from July has been pushed back to 1 October 2024. This will allow businesses more time to prepare for the implementation of the changes. The final code of practice of the Fair Tips Act was officially published today (22 April 2024). The new code introduces changes to previous announcements.

Phil Salmon, Partner and Co-Head of VAT, sets out some further thoughts on the possibility of the introduction of VAT on school fees in the second of a series of articles.

From 1 April 2023, the ‘associated companies’ rules were reintroduced for Corporation Tax purposes. Individuals, trustees, partnerships and funds who control several companies which are not in a group structure should now be considering these rules and the impact they are likely to have on Corporation Tax rates and quarterly instalment payments for their companies’ current and future accounting periods.

Following HMRC’s announcement in January 2024, concerning the mandatory payrolling of benefits from April 2026, we are still waiting on sight of the draft legislation for consultation. However, we do know the following…

UK fund managers must comply with a complex array of VAT regulations, particularly concerning the exemption of fund management services. Understanding the VAT position of UK fund managers is crucial for compliance and strategic financial planning.