Following the Bluecrest decision last month, HMRC has changed the guidance issued last February, bringing some respite for salaried members.

This will affect firms that rely on compliance with Condition C to provide certainty over the tax status of their LLP members.

HMRC made the changes to Condition C back in February 2024, triggering a huge amount of uncertainty and risk of employment taxes being assessed.

Just one year later HMRC has backtracked on the change, and confirmed on 7 February 2025 that it will reverse changes made to its own guidance.