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The Social Security Contributions (Limited Liability Partnership) (Amendment) Regulations 2015

S.I. 2015/607 · Made 9 March 2015

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Social Security

Made 9th March 2015

Laid before Parliament 10th March 2015

Coming into force 6th April 2015

The Treasury make these Regulations in exercise of the powers conferred by sections 2(2)(b) and (2A), 122(2) and 175(3) of the Social Security Contributions and Benefits Act 1992f1 and sections 2(2)(b) and (2A), 121(2) and 171(3) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992f2.

The Secretary of State and the Department for Social Development concur in the making of these Regulations.

Annotations to the whole text

Footnotes

f1

1992 c. 4; section 2(2A) was inserted by paragraph 2 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) (“the Transfer Act”) and substituted by paragraph 2 of Schedule 11 to the Welfare Reform and Pensions Act 1999 (c. 30) (“the WRAP Act”). Section 122(2) was amended by paragraph 28(a) of Schedule 3 to the Transfer Act.

f2

1992 c. 7; section 2(2A) was inserted by paragraph 3 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671) (“the Transfer Order”) and substituted by paragraph 10 of Schedule 11 to the WRAP Act. Section 121(2) was amended by paragraph 27(a) of Schedule 3 to the Transfer Order.

Contents

  1. 1Citation and commencement
  2. 2Amendment of the Social Security Contributions (Limited Liability Partnership) Regulations 2014
  3. 3Amendment of the Social Security Contributions (Limited Liability Partnership) Regulations 2014
  4. 4Amendment of the Social Security Contributions (Limited Liability Partnership) Regulations 2014
  5. Signature
  6. Explanatory note

1Citation and commencement

These Regulations may be cited as the Social Security Contributions (Limited Liability Partnership) (Amendment) Regulations 2015 and come into force on 6th April 2015.

2Amendment of the Social Security Contributions (Limited Liability Partnership) Regulations 2014

The Social Security Contributions (Limited Liability Partnership) Regulations 2014f1 are amended as follows.

3Amendment of the Social Security Contributions (Limited Liability Partnership) Regulations 2014

In regulation 1—

(a)

after paragraph (2) insert—

“(2A)

Regulations 2A, 2B and 2C have effect for the tax year 2015-16 and subsequent tax years.”,

(b)

in paragraph (3)—

(i)

before “3 and 6” insert “2B,”, and

(ii)

before “4 and 7” insert “2C,”.

4Amendment of the Social Security Contributions (Limited Liability Partnership) Regulations 2014

After regulation 2 insert—

“Members of LLPs: employment

2A.
(1)

The modification in paragraph (2) applies to—

(a)

Part 1 and so much of Part 6 of SSCBA 1992 as relates to contributions, and

(b)

Part 1 and so much of Part 6 of SSCB(NI)A 1992 as relates to contributions.

(2)

The modification is that “employment” includes membership of an LLP which carries on a trade, profession or business with a view to profit.

Members of LLPs: Great Britain

2B.

A person in employment in Great Britain as a member of an LLP which carries on a trade, profession or business with a view to profit is, unless regulation 3 applies, to be treated as a self-employed earner for the purposes of SSCBA 1992.

Members of LLPs: Northern Ireland

2C.

A person in employment in Northern Ireland as a member of an LLP which carries on a trade, profession or business with a view to profit is, unless regulation 4 applies, to be treated as a self-employed earner for the purposes of SSCB(NI)A 1992.”.

Signature

David Evennett

Harriett Baldwin

Two of the Lords Commissioners of Her Majesty’s Treasury

9th March 2015

The Secretary of State concurs.

Signed by authority of the Secretary of State for Work and Pensions

Steve Webb

Minister of State

Department for Work and Pensions

5th March 2015

The Department for Social Development concurs.

Sealed with the Official Seal of the Department for Social Development on 5th March 2015

L.S.

Anne McCleary

A senior officer of the Department for Social Development

5th March 2015

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Social Security Contributions (Limited Liability Partnership) Regulations 2014 (S.I. 2014/3159) by inserting new regulations 2A to 2C.

New regulation 2A modifies the meaning of “employment” in Part 1 and, where relevant, Part 6 of the Social Security Contributions and Benefits Act 1992 (c. 4) (“SSCBA”) and the same provisions in the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7). The modification means that “employment” includes membership of a limited liability partnership which carries on a trade, profession or business with a view to profit.

New regulation 2B provides that a person in Great Britain who is a member of a limited liability partnership is to be treated as a self-employed earner for the purposes of the SSCBA unless the Salaried Member Rules in regulation 3 apply to them. New regulation 2C makes equivalent provision for Northern Ireland.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.