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Limited Liability: National Insurance

Question for Treasury

UIN HL5129, tabled on 5 January 2022

To ask Her Majesty's Government what assessment they have made of the loss of national insurance contributions in regards to exemptions enjoyed by Limited Liability Partnerships.

Answered on

18 January 2022

No such assessment has been carried out as there are no specific National Insurance contributions (NICs) exemptions for members of a Limited Liability Partnership (LLP).

Individual members of LLPs are taxed in the same way as partners in a general partnership, paying Class 4 and Class 2 NICs like other partners and self-employed individuals. If members fall within the salaried member rules introduced by the Finance Act 2014 they are taxed as employees, paying Class 1 NICs.

Answered by

Treasury