Reeves considering tax hike for lawyers and accountants

"Chancellor Rachel Reeves is considering changes to the tax system which will lead to some lawyers, accountants and doctors paying more, in next month's Budget. These professions are among those which sometimes use limited liability partnerships (LLPs), meaning they are treated as self-employed and not subject to employers' National Insurance. The Times reported that Reeves would impose a new charge on people using LLPs, which would be slightly lower than the 15% rate of employers' National Insurance."

"Reeves is widely expected to raise taxes in her Budget on 26 November, after gloomy economic forecasts and a series of U-turns on welfare cuts made it harder for her to meet her own fiscal rules. The chancellor has signalled she is likely to focus on wealthy individuals, saying "those with the broadest shoulders should pay their fair share". A number of tax experts and think tanks have suggested extending employers' National Insurance to partnerships, arguing this would make the tax system fairer."

"Adam Corlett, principal economist at the Resolution Foundation, a think tank which focuses on people on low-to-middle incomes, said: "The chancellor will need to raise taxes in her upcoming Budget, and should do so in ways that improve the tax system. "An important step would be to level the playing field in how different ways of working are treated, with wages currently taxed more than other forms of income.""

Chancellor Rachel Reeves is considering a change to the tax system that would charge people who use limited liability partnerships (LLPs), affecting some lawyers, accountants and doctors. LLPs are treated as self-employed and currently avoid employers' National Insurance contributions. The proposed charge would be slightly lower than the 15% employers' National Insurance rate. The move follows weak economic forecasts and welfare U-turns that make meeting fiscal rules harder. Measures are expected in the 26 November Budget, with a focus on wealthier individuals. Analysts argue extending employers' National Insurance to partnerships would level the tax treatment of different work arrangements.

Read at www.bbc.com