LLP members (partners) are self-employed, which means they don’t qualify for Statutory Maternity Pay but can still receive Maternity Allowance. To receive Maternity Allowance, you’ll need to fill out an application. We’ve outlined below what steps need to take place in order to receive this financial support. Applying To apply for Maternity Allowance you’ll need …
VAT-registered businesses are required to submit VAT returns four times per year. You can, however, sign up for the VAT Annual Accounting Scheme if you are eligible (and it is worth your time). You will only have to file a VAT return once a year under this scheme. The scheme’s goal is to improve cash …
VAT Annual Accounting scheme, is it advantageous for my small business? Read More »
Making Tax Digital (MTD) is part of the Treasury’s vision to digitalise the UK tax system, which simply means that businesses must ensure that they maintain digital accounting records as opposed to continuing to do tax-related activities on paper. Hopefully, going forward, this will improve the speed and efficiency of the UK tax system as …
Making Tax Digital (MTD) for income tax – the what, the who and the how Read More »
Here you can find some of the common questions regarding limited liability partnerships (LLPs). If you have any more, please don’t hesitate to get in touch with us.
The ‘Cycle to work’ Scheme allows you to purchase a bike/cycling equipment up to the value of £1,000 through the business you work for, then pay back the amount in monthly instalments over the course of 12 months. The payments will be treated as gross deductions from your monthly salary, providing you with tax and National Insurance relief on the cost of the bike. Upon joining the LLP, any existing agreements to pay off the cost of your bike will remain.
Childcare schemes provide a tax-efficient way to fund your child’s care, between the ages of four and fifteen. There are currently two childcare schemes in operation. There’s the Childcare Voucher Scheme, which closed to new entrants on 4 October 2018, and the Tax-Free Childcare Scheme, which replaced the old scheme.
When you join the LLP, your statutory employment rights as an employee are carried over and replaced by a mix of statutory and contractual rights. Therefore, if you were eligible for statutory maternity pay when employed, the LLP will ensure that you receive the same amount of maternity pay you would have had in your employment when you become a member of the LLP.
Student loan deductions are taken from your pay and the LLP reserves these amounts, rather than paying them across on a monthly/weekly basis. Any ‘statutory’ student loan liability which is triggered because of your LLP profit share on your Self-Assessment tax return is then paid by the LLP, on your behalf. Where the statutory student loan liability is less than what has been reserved in a given financial year, the LLP will make a voluntary payment for the remainder. Interest is added to the amounts reserved to ensure the individual is in no worse position.
Many employers like to include ‘benefits’ as part of an employment contract to provide a more attractive proposition to potential and existing employees. The most popular benefits an employer can make available are company cars, health insurance and gym memberships.
Partners in LLPs are normally taxed as if they are self-employed, which can mean that they are also assessed as self-employed for the purposes of mortgage applications. The lending criteria varies from lender to lender so it is important that you use a competent broker to assist with your mortgage application. Your broker will need to speak to us so we can explain how you are paid and ensure that the correct information is submitted to the lender.
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