New HMRC guidance on the draft ‘salaried members’ rules

The updated HMRC guidance includes some recognition of representations made, but many areas of uncertainty remain. Implementation of the new rules will not be delayed and will come into effect on 6 April 2014. There is likely to remain considerable uncertainty as regards member status in situations that do not correspond with the HMRC examples. To enable LLP members to retain self-employed status, capital contributions are likely to be the main area of focus. HMRC is allowing a short period of grace to enable members to make capital contributions. LLPs need to urgently review their structure and financing.