UK targets lawyers, GPs and accountants with tax raid |
The UK Chancellor is expected to use the Budget to impose a new charge on people who use limited liability partnerships, such as lawyers, family doctors and accountants, as she seeks to address a £30bn gap in public finances. Partners are treated as self-employed, so they are not subject to employer’s national insurance, which is levied at 15% and they also pay a lower rate of employee national insurance – a situation Rachel Reeves reportedly considers unfair. A solicitor in a partnership earning the average £316,000 would face a charge of £23,000 under proposals drawn up by economists, equivalent to an average tax rate of 7.3%. Commenting on the proposals, Arun Advani, the director of CenTax, said: "Exempting partners from any equivalent to employer NICs is very regressive and simply means higher taxes for everyone else." |
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