A&M Scotland Asset Manager Briefing Note: Volume 24
HMRC communications to LLPs regarding the Salaried Member rules
We are aware of HMRC sending letters to LLPs regarding the Salaried Member rules, which became effective from 6 April 2014. Under the rules, an individual member of an LLP is treated as an “employee” - rather than self employed - for UK tax purposes if conditions are met.
We understand that LLPs are “encouraged” in the letters to review their systems to ensure that salaried members are identified correctly. To the extent that the LLP may have failed to operate PAYE / National Insurance Contributions on salaried members, then a reply would be required.
In some cases, we have seen HMRC issuing protective Regulation 80 determinations where they wish to collect unpaid income tax via PAYE.
Please click here for further information.
Luxembourg signs new Double Tax Treaty with the UK
On 7 June 2022, Luxembourg and the UK signed a new double tax treaty and an additional Protocol. As expected, the main change is in relation to the taxation of Luxembourg entities with real estate investments in the UK, where the taxation of these is now aligned with other jurisdictions.
We have summarised the important changes to be introduced by the Double Tax Treaty here.
ERS reporting reminder for 6 July 2022
We want to provide a further reminder that following the end of the 2021/22 UK tax year, asset managers that have awarded carried interest and co-investment entitlements should consider whether they need to report these awards on the ERS annual return.
The ERS annual return involves a number of key tasks, including:
- Registering new plans or arrangements;
- Verifying or self-certifying the tax-advantaged plans in place; and
- Submitting annual returns with all reportable events (including nil returns).
All ERS annual returns should be filed with HMRC on or before 6 July 2022 for 2021/22 tax year, with late filings resulting in an automatic penalty and potentially significant consequences for tax-advantaged plans.
If you need any assistance or if you are unsure whether you are required to file an ERS annual return for 2021/22, please do not hesitate to get in touch.
Second self-assessment payment on account reminder for 31 July 2022
We wanted to provide a reminder that the second self-assessment payment on account for tax year 2021/22 is due by 31 July 2022.
Taxpayers can pay this by:
- Debit Card by going to 'Pay-self assessment tax bill' and following the guidance, or
- Phone/internet banking or Cheque
