Reply to: Finally we have party of business!

[AtW]

Bye

FOBR14

[jainnode]

So Germany will be clear winner now -



Germany tax info - https://www2.deloitte.com/content/da...ts-germany.pdf

Bye

[AtW]

So Germany will be clear winner now -



Germany tax info - https://www2.deloitte.com/content/da...ts-germany.pdf

[ladymuck]

Bullet points?

Essentially they should pay 13.8% ErNI on profit share distributed to partners, which is currently exempt. Examples given included:

• PwC in 2019 had 899 members sharing profits of £753m. Average profit share was £765k each, with the Chairman receiving £3.7m. If that £753m had been paid as salary, it would have attracted £103m in ErNI
• Deloitte had 709 members in 2019 sharing profits of £513m. Average profit share was £876k each, with the Chairman receiving £1.7m. Potential ErNI bill of £71m avoided

They admit that these are estimates and that the true liability could be much less. They acknowlege that LLPs do pay full NI on all employees and salaried members. However, the lack of ErNI on profit sharing is an entirely legal loophole. Those members who are 'self-employed' pay the lower rate of NI and often the LLP will deduct that and pay it on their behalf.

The Eye's proposal is for LLPs with more than 25 partners or revenues over £5m to have the exemption removed that means they don't have to pay ErNI on profit sharing.

[jamesbrown]

There was a really interesting article in the latest Private Eye about the tax arrangements of LLPs and how partners are paid. Some of the biggest revenue earning outfits are LLPs.

The Eye doesn't do online so I can't easily share it. I could scan it in, I suppose.

The introduction of rules surrounding salaried members (basically, disguised employment w/r to LLPs) made this structure much less desirable as a means of getting self-employed treatment for tax purposes, but w/ limited liability.

[mattster]

There was a really interesting article in the latest Private Eye about the tax arrangements of LLPs and how partners are paid. Some of the biggest revenue earning outfits are LLPs.

The Eye doesn't do online so I can't easily share it. I could scan it in, I suppose.

Bullet points?

[ladymuck]

There was a really interesting article in the latest Private Eye about the tax arrangements of LLPs and how partners are paid. Some of the biggest revenue earning outfits are LLPs.

The Eye doesn't do online so I can't easily share it. I could scan it in, I suppose.

[jamesbrown]

Most barristers are self-employed.

They work with lawyers who can be self-employed, work through limited companies like us or be employed by larger firms.

And none of them are getting away with profit shifting into the Oude Joris Max 120 via the Dutch Antilles.

[SueEllen]

Big companies, yes.

Us, not so much.

Most barristers are self-employed.

They work with lawyers who can be self-employed, work through limited companies like us or be employed by larger firms.

[jamesbrown]

Starmer probably has people explain to him the different ways companies can get out of paying Corp tax and actually listened.

Big companies, yes.

Us, not so much.

Time to vote out the anti-small business Tory scum and replace them with, er,...

[AtW]

Starmer probably has people explain to him the different ways companies can get out of paying Corp tax and actually listened.

Starmer is a QC, that's right, he should have pretty good idea how that all works.

[mattster]

Why do they pay any corp tax in the UK?

Most large organisations have legit ways of not paying HMRC.

It was just a little joke
Don't worry, they'll be fine. We'll get to pick up the tab.

[SueEllen]

Starmer probably has people explain to him the different ways companies can get out of paying Corp tax and actually listened.

[jamesbrown]

Amazon must be getting twitchy!

I'm assuming they'd bump the dividend allowance back up and reintroduce an even more generous small profits rate, so I'm not too worried.

Pfffft.

[SueEllen]

Amazon must be getting twitchy!

Why do they pay any corp tax in the UK?

Most large organisations have legit ways of not paying HMRC.