LLP Member or Employee?

[TykeMerc]

If there have been incorrect submissions (if deliberately incorrect that's arguably fraud) then you most definitely need professional advice. You may be advised to be cautious in dealing with the LLP's existing accountants as they have their own stake in this.
Odds are they are perfectly straight and honest over the whole thing, but it's better to be safe than sorry in a situation like this.

[mogsy]

I understand what you say, but they did contact me and have suggested that I inform the FCA.

They know now that they too have been lied to and are trying to correct what they can, thankfully they have managed to keep HMRC off me and have already got a significant tax bill reduced.

They know that at some point the IP and HMRC are going to want answers and really have helped so far. Thing is they only prepared the returns based on the information given to them so now I have proven what my earnings actually were it is getting resolved.

[craig1]

Just to let you know I have been lucky enough to have the accountancy firm that dealt with this companies affairs assist me in having HMRC adjust my returns as they had been over declared.

There has been a massive abuse of the LLP system by the designated members so hopefully we can turn this in to a positive by assisting the RPO and IP

From my opinion as someone who uses a LLP as my contracting vehicle, I think LLPs are about as widely misused as the offshore "take home 90%+" things. Too many people see them as easy ways to con the tax man when in reality those operating the system run almost no risk while those people who sign things without reading take all of the risk of HMRC coming knocking with a very large bill.

In a nutshell, if someone offers you a Member's place in a LLP and you don't have in place the most bulletproof contract ever written by any lawyer in the world then laugh at them and walk away.

[mogsy]

Craig I wish I had more of an idea 12 years ago of what I was getting in to.

All I can hope is that everything is alright, the only peace of mind given to me and my other colleague's is that the IP is not pursuing us but two people in particular who were the designated members.

Lucky only because we have had to work with the IP since this happened.

[stek]

Craig I wish I had more of an idea 12 years ago of what I was getting in to.

All I can hope is that everything is alright, the only peace of mind given to me and my other colleague's is that the IP is not pursuing us but two people in particular who were the designated members.

Lucky only because we have had to work with the IP since this happened.

I used an LLP for a short time and it was the worst thing I ever did - £15k tax bill....

[LisaContractorUmbrella]

I understand what you say, but they did contact me and have suggested that I inform the FCA.

They know now that they too have been lied to and are trying to correct what they can, thankfully they have managed to keep HMRC off me and have already got a significant tax bill reduced.

They know that at some point the IP and HMRC are going to want answers and really have helped so far. Thing is they only prepared the returns based on the information given to them so now I have proven what my earnings actually were it is getting resolved.

It's good that you are being given advice from accountants but I really think that you would be well advised to contact a lawyer that specialises in employment law as the arguments here appear not to be just about tax but also about your employment status - if the firm you worked for have acted incorrectly you may have entitlement to a claim for redundancy - as the firm has collapsed this could be paid for by the Government https://www.gov.uk/your-rights-if-yo...ey-owed-to-you

[Maslins]

Did you get a payslip each month and/or a P60 every year?
Did you get letters from HMRC talking about your self assessment?

One problem you may have is that you'll have been financially better off (due predominantly to lower NIC bills) by being a member rather than employee all these years. You've benefited (knowingly or otherwise) from this perk for 12 years and kept quiet. Now there's something where you'd be better off if you were an employee, and suddenly you're arguing that's what you've always been.