How might Rachel Reeves target lawyers, accountants and doctors in her budget?

"More than 190,000 people work in an LLP, a structure that is very popular with lawyers. Partners pay income tax on profits as they arise, but they are considered self-employed and therefore do not pay any employer's national insurance. It would otherwise be levied at 15% on their income. Reeves is said to consider this unfair and is expected to levy a slightly lower rate on partners, according to government sources confirming plans first reported by the Times."

"The Centre for the Analysis of Taxation (CenTax) thinktank found that solicitors receive a fifth of all partnership income, averaging more than 300,000 each in partnership profits annually. The average is 118,000 a year for GPs, and 246,000 for accountants. Last year, the partners at these firms escaped Reeves's last change to employer NICs, which were raised to 15% from April 2025."

"Many City law firms operate as LLPs, including Linklaters, Clifford Chance and Freshfields. The changes would also affect doctors working in private practice in LLPs but it is possible that not all doctors in partnerships would be affected. The government is reportedly trying to find a way to shield NHS GPs from a higher tax bill by applying the changes only to LLPs, which are not the type of partnership typically used by those providing care for NHS patients."

More than 190,000 people work in an LLP, a structure popular with lawyers. Partners pay income tax on profits as they arise but are classed as self-employed and do not pay employer national insurance, which would otherwise be levied at 15% on their income. Rachel Reeves is considering ending the exemption and applying a slightly lower employer NIC rate to partners. The change would affect lawyers, accountants, doctors and other professionals working in partnerships. Solicitors receive a fifth of partnership income, averaging over 300,000 annually; averages are 118,000 for GPs and 246,000 for accountants. The government may limit the change to LLPs to shield NHS GPs, though GP locums in locum chamber LLPs could be affected.

Read at www.theguardian.com