Introduced in 2014, the salaried member rules apply to members of limited liability partnerships (LLPs) who for tax purposes are considered to be employees and therefore subject to employment taxes under PAYE and employer’s National Insurance Contributions, rather than as self-employed.

What are the rules?

To be treated an employee under these rules, an individual who is a member of an LLP must meet three conditions:

Condition A is met if it is reasonable to expect that at least 80% of the total amount payable by the LLP, in respect of an individual’s performance, will be ‘disguised salary’, ie, broadly, is fixed or not varied/affected by the overall profits of the LLP.

Condition B is met if an individual does not have ‘significant influence’ over the affairs of the LLP. This is arguably the least clear of the three to determine, as there is no simple calculation that gives the ‘right’ answer.

Condi